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CMBS Delinquencies Remain Elevated in Chicago
As July ended, Chicago’s CMBS delinquency rate was the third-highest of major U.S. metros at 5.3%, according to Trepp data. Only Philadelphia at 5.4% and Washington, D.C. at 14.1% were higher. Meanwhile, delinquencies ticked downward nationally.
By contrast, San Francisco’s late-pay rate for securitized commercial mortgages was a vanishingly low 0.3%, while New York City came in at 1.2%. Chicago’s ticked upward from a year ago, although it’s down considerably compared to the post-recession peak of 10.3%.
Trepp’s Manus Clancy told Crain’s Chicago Business that the factor keeping Chicago’s delinquency rate elevated was a series of massive problem loans that are “taking longer than other markets” to resolve. Largest of these is backed by the 1.6 million-square-foot former AT&T campus in Hoffman Estates, IL (pictured), which was hit with a foreclosure suit in 2016, and has a $114-million balance remaining on its loan.
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