The aggregate value of commercial real estate (CRE) loans priced by DebtX that back CMBS rose to 77.4% as of June 30 from 76.6% as of May 28, according to a release from the firm. Loan values were 76% as of June 30, 2009.
In June, DebtX priced 58,232 CRE loans with a $683.9 billion aggregate principal balance. These loans, which back 628 US CMBS trusts, each received a DXMark®, which is a price based on loan sales executed at the CRE data company.
The benefit of declining interest rates on prices is more than offsetting the deterioration in commercial real estate fundamentals. As a result, prices are still rising although the underlying market conditions continue to weaken.
“Commercial real estate fundamentals continue to deteriorate and are constraining CMBS loan price increases gained through lower treasury rates,” said CEO Kingsley Greenland.“Several key performance metrics continue to weigh on the CMBS market, including record high delinquency rates, the increased volume of loans being transferred to special servicers and the low rate of balloon repayments at maturity.”
DebtX’s CMBS loan pricing analysis is part of DXMarket Datasm, a subscription service that offers loan buyers insight about deals executed at www.debtx.com.