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Tue May 22, 2012
The delinquency rate on loans included in U.S. commercial mortgage-backed securities (CMBS) conduit/fusion transactions increased by five basis points in December to 9.32 percent, according to new data from Moody’s Investors Service.
At the same time, the New York-based rating agency says the rate of loans in special servicing, as measured by Moody’s loan tracker, declined by 13 basis points during the month to 11.97 percent.
December was the 12th consecutive month that CMBS delinquencies in the U.S. have been above 9 percent, according to Moody’s assessment.
New delinquencies in December slightly exceeded the resolutions of delinquent loans. There were $3.7 billion of newly delinquent loans last month, while $3.5 billion in loans were resolved or worked out.
The $5.5 billion of seasoned loan dispositions and payoffs more than offset the $1.4 billion of new CMBS deals in December, resulting in a net decline of total CMBS in the U.S. market.
Bank of America Plaza in Atlanta, Georgia, with an outstanding balance of $363 million, was the largest newly delinquent loan in December and also became the seventh largest delinquent loan overall, according to Moody’s.
By property type, the hotel and multifamily sectors were the only two to see declines in their delinquency rates in December.
The hotel sector recorded the greatest decline with a 58 basis point drop to 12.96 percent, while multifamily posted a 43 point drop to 14.44 percent. The multifamily rate remains the highest among the core asset classes.
Office and retail, the largest sectors by share of total CMBS outstanding, both recorded higher delinquency rates in December. Office delinquencies increased by 26 basis points to 8.65 percent, while retail delinquencies increased 25 basis points to 7.22 percent.
The industrial sector recorded the largest increase in delinquencies last month, with its rate rising 59 basis points to 12.09 percent – the highest delinquency rate reported for the sector to date.
By state, Nevada continues to have the highest delinquency rate, at around 20 percent.
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