A record number of loan resolutions in August tempered the effect of $3.1 billion of new delinquencies in U.S. CMBS, according to Fitch Ratings U.S. CMBS delinquency index.
Recent defaults on five loans greater than $100 million contributed to a 23-basis point net increase in the U.S. CMBS delinquency rate to 8.48%. Meanwhile, $2.1 billion of loans were resolved or liquidated last month.
"Though special servicers are working out loans at an increased rate, the volume of new delinquencies has not yet subsided," said senior director Adam Fox. "Highly levered loans originated at the market’s peak continue to default as borrowers seek modifications or hand back the keys to underperforming assets."
In August, three Fitch-rated loans in excess of $100 million became newly delinquent due to performance issues, including: the $825.4 million Innkeepers Portfolio; $140 million Hyatt Regency – Bethesda; and $129.5 million Lynnewood Gardens.