Distressed CMBS loans could hit $60B by 2011

New York /
Feb.February 23, 2010 08:51 AM

By the close of 2010, the country may be looking at more than $60 billion in distressed loans that are tied up in commercial mortgage-backed securities, according to a new Credit Suisse Group report released yesterday. Troubled loans are increasing by $2.7 billion a month, as of the fourth quarter of 2009, up from $1.4 billion a month during the first quarter, and the buildup could prevent a larger economic recovery. About 5 percent of loans are at least two months overdue, a more than 10-fold increase over the end of 2008 and an overwhelming caseload for special servicers. Discounting the loans that are not yet in distress, it would take such companies five and a half years to resolve the $28.8 billion in delinquent loans. “The transfer of distressed loans into the hands of stronger operators to create value at the property level where in turn they contribute to local economies is a vital step in any recovery,” according to the report. [Reuters]


Related Articles

arrow_forward_ios
Photo illustration of the Hyatt Regency hotel in New Orleans (Hyatt, iStock)
Hurricane Ida threatens $7B of CMBS
Hurricane Ida threatens $7B of CMBS
Digital Bridge’s Marc Ganzi and the Sheraton San Jose Hotel and Four Points by Sheraton Pleasanton (Ganzi by Sonya Revell, Marriott)
Digital Bridge, formerly Colony, sells off remaining hotel portfolio
Digital Bridge, formerly Colony, sells off remaining hotel portfolio
Distrikt Hotel and Stephen Ellman of Zeichner Ellman & Krause (Tripadvisor, Flintlock, ZEK)
Midtown’s Distrikt Hotel heads for foreclosure as receiver named
Midtown’s Distrikt Hotel heads for foreclosure as receiver named
The SASB market has produced several massive transactions, like a $4.65 billion loan for the Extended Stay America portfolio or SL Green Realty’s $3 billion refinancing of One Vanderbilt office tower in Manhattan (iStock, KPF, Getty)
CMBS loan issuance is booming — but not in the usual areas
CMBS loan issuance is booming — but not in the usual areas
Barry Sterlincht of Starwood Capital Group (Getty, iStock)
Starwood bailing on the mall business
Starwood bailing on the mall business
Blackstone CEO Stephen Schwarzman and Starwood CEO Barry Sternlicht (Getty)
Here’s an inside look at Extended Stay’s 62K-key portfolio
Here’s an inside look at Extended Stay’s 62K-key portfolio
One Vanderbilt and Marc Holliday (SL Green, HeartlessMind/Wikimedia)
SL Green closes on $3B One Vanderbilt refi
SL Green closes on $3B One Vanderbilt refi
NewPoint Real Estate Capital CEO David Brickman (Photo via Freddie Mac)
Former Freddie Mac CEO’s new lending platform is here
Former Freddie Mac CEO’s new lending platform is here
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...