At least two more commercial note/REO auctions are scheduled for the beginning of April, according to Barclays Capital CMBS Weekly Strategy Report published today.

In February, ASR reported on how the rise of commerical note/REO auctions have contributed to increasing severity levels and have increased liquidation volumes in CMBS conduits.

Barclays analysts cited data from Auction.com, which shows that roughly $312million of the loans up for auction on the first week of April are securitized in CMBS.

The loans are centered around specific geographies: the Northeast (New York, New Jersey, Maryland) for the April 4 auction and the southern states (Texas, Louisiana, Arkansas, Oklahoma) for the April 12 auction.

The Barclays report identified some of the large loans scheduled to be auctioned in April as the $27.1 million Philly Self Storage Portfolio in BACM 2007-3 and the $27 million 1025 Country Road office building in CSMC 2007-C1.  

Results from Feb Activity

The analysts also noted how the Feb. 6-9 auctions have affected CMBS remittance reports.  

The results show that suburban office properties up for bid have recorded 60-70% severities and multi-families have performed better, recording losses of 15% to 20%.

"In addition to Auction.com, loans are also being reportedly offered through Mission Capital and DebtX," Barclays analysts said. "As such, despite the recent lull in disposals, we continue to expect elevated liquidation activity in the coming months."

 

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