CMBS

A high concentration in multifamily properties, which have defaulted at much lower rates than other property types, is a positive consideration.

Investors in the senior classes of the capital structure will receive principal and interest payments sequentially, beginning with class A, until class E2 receives all of its principal and interest.

At stake are 10 properties in CMBS loans representing about $382.2 million in allocated property balances with leases will expire before yearend 2023.

Primary markets is the locale for just under half of the collateral pool, 49.3%, which is below the average of 53.4% observed in the comparison set.

Real-estate owned assets sold in 2021 achieved 109% of the most recent appraised value, on average, compared with the 97% that the sales achieved, in 2020.

Half of the loans were originated prior to the onset of the COVID-19 pandemic, and mainly in Q1 2020, while classes A and B have interest-only portions.

By property type, lodging assets led the way for total delinquencies, with 6.3%, while some 3.5% of the lodging pools were current and specially serviced.

Office properties account for 60.8% of the pool, above the 41.2% average for 2020 deals, and above the 36.5% average for 2021.

Office buildings are increasingly going delinquent on their mortgages, and yet bond buyers can’t seem to get enough of the properties.

Commercial mortgage bond sales are heating up again, signaling another strong year ahead after issuance of the securities hit a post-crisis record in 2021.