CMBS loans in special servicing continued to decrease in August but the recovery rate on liquidated CMBS loans dipped to 60.5% for second-quarter 2013 compared to 71.4% in 1Q’13, according to the latest quarterly index results from Fitch Ratings.
CMBS loans in special servicing fell to $60.1 billion for 2Q’13, compared to $64.2 billion at the end of 1Q’13. However 30 CMBS loans had 95% or greater losses last quarter, while 16 of those loans saw losses of 100% or greater, according to Fitch.
Trepp reported the number of loans liquidated in August was 90, which resulted in $444.29 million in losses. August liquidations totaled $1.09 billion, this compares to the 12-month moving average of $1.32 billion and is slightly better than half of July's $2.05 billion, according to Trepp.
Broadly speaking, the data shows the entire specially serviced CMBS loan universe continuing to gradually fall. “The percentage of CMBS loans in special serving remains at 9%, a significant decrease from the peak at 12% in 2010,” said Stephanie Petosa, a managing director at Fitch.