New York’s CMBS market continued to buck the twin national trend of increasing delinquency rates and weak office markets, during an active first quarter. New York saw a total of $1.4 billion in new issuance, $901 million of which was backed by office properties.
There was $59 billion on the New York CMBS market in March, down 0.7 percent from $59.4 billion in February, and the delinquency rate fell 11 basis points to 0.51 percent, according to Trepp data prepared for The Real Deal. Nationally, the delinquency rate ticked up 6 basis points to 5.37 percent.
New issuance in March totaled $556 million across four deals. Three loans totaling $197 million were securitized in the same $1 billion CMBS deal originated by Goldman Sachs. They include a $100 million loan backed by Vornado Realty Trust’s 350 Park Avenue, part of a $400 million financing package provided by Goldman Sachs, and a $70 million loan backed by Straus Group’s retail condominium at 935 Madison Avenue.
Four New York loans, totaling $230 million, were included in another $1 billion CMBS deal, originated by by JPMorgan Chase and Deutsche Bank. They include a second chunk of the 350 Park Avenue loan and an $80 million piece of the $370 million refinancing of the Kushner Companies’ retail condo at 229 West 43rd Street.
While the majority of the new issuance was backed by office and retail properties, a total of $28 million in loans on co-op properties in Manhattan, Brooklyn and Queens, were securitized in a $624 million CMBS package.
As for subtractions from the CMBS pool, the Chetrit Group’s $82 million loan on two office properties at 90 and 100 Trinity Place, which had been non-performing beyond maturity, was refinanced with a $101 million loan from South Korean fund manager KTB Asset Management and Midtown-based Rexmark.
The market is expected to perk up more in the upcoming quarter, said Trepp analyst Sean Barrie, as concerns about the risk retention laws implemented in December wane.
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