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CMBS Disposition Volume Surges
CMBS disposition volume surged to $1.4 billion in June, according to Trepp, following a 12-month low in May. Deal activity revealed 57 loans paid off with losses, while the average loan size rose to a multi-year high of $24.8 million.
Heavy losses within the retail sector caused the average loss severity to rise by nearly 12 percentage points to 36.69%. However, loss severity is still relatively low compared to this year’s high of 57.8% in January.
Trepp’s list of the five largest losses applied to CMBS loans in June:
- The Source: backed by Mall at the Source, Westbury, NY, $124 million loan written off with roughly $85.2 million in losses
- Fiesta Mall: Mesa, AZ, $83.3 million loan written off in full
- Fortunoff Portfolio: backed by two Fortunoff department stores, one in Westbury, NY, and another in Woodbridge, NJ, $69.5-million portfolio was disposed in full
- FRI Portfolio: backed by two offices in West Palm Beach, FL and Nashville, TN, $60.1-million portfolio was disposed with a 100% loss
- 2000 Corporate Ridge Road: 256,022-square-foot office in McLean, VA, $60.3-million note liquidated with $47.8 million in losses
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- ◦Financing
