National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Delinquency Rate Among KBRA-Rated CMBS Reaches 7.9%
Kroll Bond Rating Agency (KBRA) said Thursday that the delinquency rate among KBRA-rated U.S. private label CMBS increased to 7.9% in August from 7.5% in July. However, the total distress rate (delinquency plus current but specially serviced loans) remained stable at 10.6%.
The conduit multifamily delinquency rate increased 178 basis points month-over-month to 7.2%. The increase was due largely to the Park West Village loan ($254 million in six KBRA-rated conduits including $66.5 million in rake certificates in BBCMS 2022-C17), which became delinquent.
In August, CMBS loans totaling $1.6 billion were newly added to the distress rate, with 33.8% ($556.2 million) involving imminent or actual maturity default. The multifamily sector experienced the highest volume of newly distressed loans (40.8%, $672.3 million), followed by office (35.7%, $588.5 million) and retail (9.4%, $154.5 million). However, the office sector posted the highest delinquency rate at 13.2%, up 140 bps from July.
Pictured: 1211 Ave. of the Americas in Midtown Manhattan; KBRA says a $1-billion CMBS loan tied to the property became nonperforming balloon in August.
