The volume of CMBS loan losses increased slightly in April, although the average loss severity declined, reported Trepp. The 12-month moving average monthly disposed balance increased to $173.5 million in April, up somewhat from $171.1 million in March. However, the 12-month moving average loss severity decreased to 61.08%, down from the 62.97% recorded as of February.
In April, six loans with a collective balance of $134.2 million were resolved with $64.7 million in total losses, with an average loss severity of 48.22%. Average loss severity and total losses were down from March, when loss severity was 81.27% across a volume of $157.5 million in losses.
Looking over the past 12 months, the April loan loss figures come in at the lower end without representing the low point. There were smaller totals of loans resolved at a loss in August, October and December of 2024 as well as in February of this year. February’s loss severity was also lower at 47.87%.
Pictured: Alamance Crossing in Burlington, NC. A $37.7-million CMBS loan backed by the property was resolved at a loss in April.
Read More: Trepp: Volume of CMBS Loan Losses Rises in April
