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Apartment CMBS delinquency edges up in June while overall CRE improves
Multifamily CMBS delinquency rose 28 bps to 7.23% in June, even as the overall commercial real estate CMBS delinquency rate fell 20 bps to 7.35%.
Apartment CMBS delinquency increased in June, according to data firm Trepp, with the multifamily delinquency rate rising 28 basis points to 7.23%. The rate was 6.64% six months earlier and 5.91% a year prior. Trepp also showed a decline in the multifamily CMBS delinquency rate for a major Manhattan exposure, citing the return of a loan that had been modified to resolve defaults. KBRA said the $539.5 million Yorkshire & Lexington Towers loan returned to the master servicer after a modification cured defaults on the senior loan and subordinate mezzanine debt, while the multifamily CMBS rate fell 27 basis points to 8.23% in June. Beyond multifamily, Trepp reported the overall CRE CMBS delinquency rate decreased 20 basis points to 7.35%. Within the broader mix, retail rose 30 basis points to 6.91% and office increased 4 basis points to 11.57%, while lodging fell 79 basis points to 5.22% and industrial declined 11 basis points to 1.2%. Trepp further found the overall CRE CMBS special servicing rate increased by 34 basis points to 11.2%. Multifamily-related stresses were mixed alongside bank-level data from CRED iQ, which showed FDIC-insured banks had $9.78 billion in delinquencies in the first quarter, including a multifamily delinquency rate rising 5 basis points quarter over quarter to 1.47%, the highest Q1 figure since Q3 2013.