CMBS special servicing rate declines in March

Retail sector saw biggest month-over-month improvement

National /
Apr.April 12, 2021 12:45 PM
The rate of loans sent to special servicers continued to fall in March. (Unsplash)

The rate of loans sent to special servicers continued to fall in March. (Unsplash)

The rate of loans sent to special servicers continued to fall in March, showing signs of recovery in several sectors.

The overall special servicing rate for commercial mortgage-backed securities in March was 9.42 percent, down 18 basis points from February, according to Trepp. The rate has been declining since the September 2020 peak of 10.48 percent, Commercial Observer reported.

In March, 35 CMBS notes totaling $1.13 billion were sent to the special servicer, compared to 51 notes totaling $1.19 billion in February.

The share of loans in special servicing declined slightly across all sectors, except for offices, which increased by 17 basis points. That was fueled by the transfer of a $300 million loan backed by the One California Plaza office complex in downtown Los Angeles.

Retail saw the biggest month-over-month improvement, with the special servicing rate in that sector was16.23 percent, down by 44 basis points from the same time last month. The rate of the struggling lodging industry was 24.16 percent, down 7 basis points from February.

Notable loans moved to special servicing include a $135 million deal backed by the Aruba Marriott Resort & Stellaris Casino; a $127.9 million mortgage secured by Deerbrook Mall in Humble, Texas; and $111.1 million loan for 600 Broadway in Manhattan.

[CO] — Akiko Matsuda





    Related Articles

    arrow_forward_ios
    National chains and mom-and-pop stores are seeing increasing sales per square foot and shrinking occupancy costs (Getty)
    National chains paid 93% of rent in April
    National chains paid 93% of rent in April
    (RIPCO, iStock)
    Target, Five Below, Smashburger open in new Brooklyn shopping center
    Target, Five Below, Smashburger open in new Brooklyn shopping center
    Close to 80 hotels with more than 13,000 rooms plan to open in 2021. (iStock)
    Big year seen for hotel openings, despite few visitors
    Big year seen for hotel openings, despite few visitors
    Savanna’s Christopher Schlank and Nicholas Bienstock with a rendering of 141 Willoughby Street (Savanna; SLCE Architects; Fogarty Finger Architects)
    Savanna nabs $264M loan for Downtown Brooklyn office project
    Savanna nabs $264M loan for Downtown Brooklyn office project
    Blackstone president Jon Gray and the Blackstone headquarters at 345 Park Avenue in NYC (Getty, Google Maps)
    Blackstone sets office return for some vaccinated staffers
    Blackstone sets office return for some vaccinated staffers
    Slate Property Group's Martin Nussbaum and a rendering of the project
    Hakimian, Certes land $59M loan for East Harlem multifamily project
    Hakimian, Certes land $59M loan for East Harlem multifamily project
    Watch TRD Brand Studio’s first-ever webinar on the new office normal
    Optimizing the office: TRD Brand Studio webinar on the new workplace normal
    Optimizing the office: TRD Brand Studio webinar on the new workplace normal
    The reopening of NYC has created a surge of demand for apartments. (Getty)
    Reopening sparks signs of a real estate rush
    Reopening sparks signs of a real estate rush
    arrow_forward_ios

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

    Loading...