U.S. CMBS delinquencies declined for the fourth straight month according to the latest index results release today from Fitch Ratings.
CMBS late-pays fell two basis points last month to 8.37% from 8.39% in August. Several notable loans were also paid in full this past month. But these loans, said Fitch, were paid off only after refinancing delays.
“Maturity defaults even on quality assets are still taking place, suggesting that borrowers may be lacking the proper motivation to secure new financing sooner, often resulting in fees to the trust," said Mary MacNeill, managing director.
The $275 million CalWest Industrial Portfolio, for example, matured in June, though the payoff did not take place until Aug. 30. Delays also took place with the $232 million Westin New York at Times Square, which matured in March but was not paid off until this past month."
The Fitch CMBS delinquency index showed that hotel and multifamily rates continued improving, while the office and retail rates modestly worsened. The hotel rates in August declined to 10.24% last month from 10.82% in August; and in the multifamily sector, rates dropped to 9.95% from 10.18%.