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Dayton Tornado Zone Holds Nearly $1B in At-Risk CMBS
As much as $977.8 million in CMBS may be exposed to storm damage from the recent tornadoes around Dayton, OH. Morningstar Credit Ratings has identified 130 properties backing 123 securitized loans in Ohio’s Greene, Mercer and Montgomery counties that could have seen significant damage from the May 28 and 29 tornadoes.
Morningstar doesn’t expect large waves of loan defaults as a result of the storms, and notes that the federal government hasn’t yet determined the extent of the damage. However, the ratings agency says property damage could prevent refinancing some existing loans and jeopardize the payoff of some $134 million in loans due to mature over the next 12 months.
The two properties backing the Dayton area’s largest CMBS loans, Greene Town Center in Beavercreek, OH and Dayton Mall in Miami Township, OH, are in the less severely-affected area south of Dayton, Morningstar reported. The loans total $207.8 million.
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