Fitch: REO Volume on Rise for U.S. CMBS 2.0

Fitch Ratings’ latest weekly U.S. CMBS report notes that the volume of REO assets in U.S. CMBS 2.0 deals has grown considerably over the last few years, even though REO assets are mostly concentrated in U.S. CMBS 1.0 transactions.

Fitch’s overall REO exposure through the end of last month included 387 assets with an outstanding balance of $6.3 billion, 94% of which are in CMBS 1.0 deals. The remaining $398 million in REO assets for CMBS 2.0 transactions represents a sizeable growth from $303 million at year end (YE) 2017. Consider that there was just $82 million at YE 2016 and $33 million at YE 2015.

Not surprisingly, retail properties lead with 42% of the total outstanding balance of REO, followed by office at 38%. Fitch expects this trend to continue, as CMBS 2.0 defaults further increase.

REO assets in CMBS 2.0 deals came largely from 2014 deals, and were comprised of multifamily and hotel properties. Fitch reports these loans defaulted due to the decline in the oil and gas industries, with the top two geographic concentrations in North Dakota (28%) and Texas (26%).

For comments, questions or concerns, please contact Dennis Kaiser

Connect

Inside The Story

Connect With Fitch Ratings

About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

Order Reprints

◦Financing

Sub Markets

National

Property Sectors

Topics

National CRE News In Your Inbox.

Fitch: REO Volume on Rise for U.S. CMBS 2.0

Inside The Story

About Dennis Kaiser

STAY INFORMED

Sub Markets

National

Property Sectors

Topics

National CRE News In Your Inbox.

Fitch: REO Volume on Rise for U.S. CMBS 2.0

Inside The Story

About Dennis Kaiser