For the first time in 33 months, U.S. CMBS loan delinquencies declined, with a large assist from hotels, according to the latest loan delinquency index result from Fitch Ratings.
CMBS delinquencies dropped 88 basis points (bps) to 7.78% due largely to the resolution of seven loans greater than $100 million, including the $4.1 billion Extended Stay America loan. At the same time, hotel delinquencies declined to 14.14% from 21.31%, the largest drop ever recorded of any CMBS asset type by Fitch.
"Whereas hotel-backed loans saw the most rapid performance deterioration, now the opposite is true," said managing director Mary MacNeill. "Hotel loans are now the most well-positioned to recover quickly when business and consumer spending resume and the economic recovery gains traction."
Delinquency rates for multifamily properties were at 14.57%; for retail properties, 6.25%; for industrial properties, 5.83%; and office property delinquency rates were at 5.38%.
But Data reported by Trepp showed that The volume of seriously impaired CMBS loans in New York City grew by 3.8 percent last month after a portfolio of 1,083 Upper West Side apartments co-owned by Pinnacle Group and private equity partner the Praedium Group slipped further into delinquency. According to a report in a the Real Deal .
The Pinnacle-Praedium delinquency is fourth-largest of 49 such loans in the city and alone is responsible for the increase, which put the city's total volume of loans more than 60 days delinquent at $4.9 billion (see the full list of seriously delinquent New York City CMBS loans below).
The overall five-borough delinquency rate, which includes all defaulted CMBS loans, was 7.15 percent at the end of October, according to the Trepp data. That's still below the national CMBS delinquency rate of 8.58 percent.