source: Trepp
The nationwide delinquency rate for commercial mortgages spiked in March, rising well past the 12-month average and to a five-month high. In its March 2012 U.S. Commercial Mortgage-Backed Security Delinquency Report, Trepp measured the delinquency rate to be 9.68 percent, up from 9.37 percent in February and 9.42 percent in March 2011. [more]
Jared Kushner’s Kushner Companies has completed a refinancing of its mammoth tower at 666 Fifth Avenue with Vornado Realty Trust, Bloomberg News reported. Vornado is injecting $80 million of equity into the project in return for a 49.5 percent stake in the tower, while Kushner will also contribute $30 million to the refinancing.
Under the agreement, the tower’s senior debt will be reduced to $1.1 billion from almost $1.22 billion, a source with knowledge of the deal told Bloomberg. The equity contributions will cover the costs of leasing the 30 percent of the building that’s currently vacant, the source said. [more]
A William Street New School accommodation facility is one of five New York City addresses making its debut on Trepp’s list of distressed properties in November, according to data from the real estate analytics firm.
New to the 56-item list of distressed properties is Metro Loft Management’s 111,000-square-foot, 17-story building at 84 William Street, currently being used as a student housing facility for attendees of the New School, according to the university’s website. The company is non-performing on a loan beyond maturity, with a balance of $28.9 million, after being current in October, the data shows. (note: correction appended) – Katherine Clarke [more]
With the failure of five banks last month, 90 banks have now shut down nationwide this year, according to a report released today by analytics firm Trepp. The continued struggles have come in large part from commercial real estate exposure, the main driver behind problematic loans for last month’s bank failures. Commercial real estate loans totaled 80.8 percent of the total $160 million in non-performing loans at the shuttered institutions. – Alexander Britell [more]
Even assets with healthy performance are struggling to refinance in this tough credit market, the Wall Street Journal reports.
For instance, after three one-year extensions, the Westin New York in the Times at Times Square is looking to refinance its $232 million mortgage. And although the 863-room hotel, developed by Tishman Hotel and Realty, can report 90 percent occupancy, according to real estate analytics firm Trepp, the servicer transferred responsibility to a loan workout specialist this past Friday. [more]
Dune Real Estate Partners has purchased the loan for a portfolio of 36 apartment houses on the Upper West Side for close to $105.1 million — a 45 percent discount — Crain’s reported. According to numbers provided by real estate analytics firm Trepp, the loan is valued at $192.1 million. The buildings concerned, which house a total of 1,083 units, were bought by controversial landlord the Pinnacle Group with the Praedium Group during the real estate boom. Pinnacle alone was thought to have purchased $1 billion in distressed buildings in Upper Manhattan and parts of the Bronx between 2004 and 2006, coming under extensive criticism for attempts to hike rents after fudging capital improvements. [more]
The number of commercial mortgage-backed securities delinquencies evened out in September nationwide, following a jump in July and a slide in August, data from market research firm Trepp, released today, shows. The delinquency rate for U.S. commercial real estate loans in CMBS inched up 4 basis points to 9.56 percent.
The delinquency rates for all major property types were up slightly, except for hotels, Trepp says.
The office delinquency rate was up 12 basis points to 8.29 percent; the industrial delinquency rate jumped 14 basis points to 11.38 percent, and multi-family delinquency increased 52 basis points and remains the worst major property type at 16.96 percent.
The hotel rate was down 46 basis points, but this was mostly driven by the resolution of loans at the national hotel group Red Roof Inn, Trepp data shows. The Red Rood Inn loans were resolved with 50 percent losses, which resulted in the removal of two distressed hotel loans, ultimately reducing the delinquency rate for hotels, but not in the way that investors would have liked. — Katherine Clarke [more]
Since January 2010, the losses from loans that had been part of a commercial mortgage-backed security package, but were then liquidated, have been staggering. The chart above from loan data specialists Trepp shows the bulk of the losses come from the peak lending years of the boom, from 2005 to 2007. The bars show the total value of the loans that were liquidated over the past 19 months, split into the portion of the principal that was recovered (in green) and the portion that was lost (in orange). – Adam Pincus [more]
Commercial real estate exposure was the main driver behind problem loans for the 13 U.S. banks that failed in July, according to data released by Trepp today.Three of the failures occurred in Florida with the Landmark Bank of Florida, the Southshore Community Bank, and the First People’s Bank.
Commercial real estate loans comprised 77 percent of the total $1.03 billion in nonperforming loans at the failed banks. – Miranda Neubauer [more]
Much of the positive momentum in the nation’s commercial mortgage-backed securities market seemed to have vanished in July, Trepp says in a monthly report, with the nationwide delinquency rate spiking to 9.88 percent, an increase of 51 basis points from June.
For much of the spring, the CMBS market had been experiencing an upswing. There was a greater rate of loan issuance, troubled loan resolution and drop in delinquency rates. The sudden shift may be attributed to a technical change in the manner in which some servicers report their data, Trepp said, but widening CMBS spreads and an announcement by Standard & Poor’s that it was pulling a rating last week may have made issuers more tentative in their approach to new lending. – Katherine Clarke [more]
