Large-scale loans helped drive significant credit changes in newly delinquent loans, cured loans and modified loans during July, Trepp reported. For example, the office CMBS delinquency rate rose 54 basis points last month to 8.09%, with a single loan–the $670-million securitization on 230 Park Ave. in Midtown Manhattan–representing about one-third of new delinquencies in the sector.
In the multifamily sector, several large loans also became delinquent or reverted to delinquency during July, according to Trepp. One of these was the $221-million MFP portfolio, which became nonperforming last November, returned to performing status in April and then flipped back last month. Multifamily delinquencies rose 27 bps to 2.63% as July ended.
Conversely, the $124.2-million Gansevoort Park Avenue loan backed by a Manhattan lodging property was sent to the special servicer in June for imminent monetary default but then turned back to performing matured balloon in July, taking the loan out of the pool of delinquent CMBS deals. This helped drive a 15-bp decrease in hotel delinquencies to 6.17%. Retail delinquencies also declined in July, dropping by 28 bps to 6.14%.
Read More: Large Loans Drive Sectors’ CMBS Delinquency Rates Up or Down in July
