Trepp Research Report: Overall US CMBS Special Servicing Rate at a…

The number of loans newly transferred to special servicing more than doubled in November, with a total of 29 loans sent to special servicing in comparison to 12 the month before.

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Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has released its November 2019 US CMBS Special Servicing Report. The full report can be accessed here: https://www.trepp.com/instantly-access-november-special-servicing.

The Trepp CMBS Special Servicing Rate came in at 3.00% for November, presenting no change from the month prior. The special servicing rate for CMBS 2.0+ notes increased by 20 basis points last month. Retail loans in the CMBS 2.0+ universe saw a significant increase of 65 basis points, the largest increase of all property types.

In the legacy CMBS universe, the office special servicing rate saw a significant decline of 489 basis points, while there was a notable increase of 171 basis points for the industrial rate. This led to a net decline of 114 basis points in the legacy CMBS special servicing rate.

“The number of loans newly transferred to special servicing more than doubled in November, with a total of 29 loans sent to special servicing in comparison to 12 the month before,” said Trepp Research Analyst, Jyoti Yadav. "Together, these loans hold an outstanding balance of $1.22 billion, a ten-fold increase from last month.”

The majority of the new specially serviced loans are in the retail sector, accounting for a whopping 75% of the total outstanding balance. This was followed by the lodging sector, which saw the second-highest number of loans sent to special servicing but accounted for only 14% of the total outstanding balance.

The substantial increase in the total outstanding balance is mainly on account of the $680 million Starwood Mall Portfolio which was transferred to special servicing in November for the second time because of maturity default. The loan is backed by four retail properties and was scheduled to mature in November 2017 but its maturity term was extended by two years to November 2019. However, the borrowers failed to pay off last month, resulting in the loan being transferred to special servicing.

For additional details, such as historical comparisons and analysis on all major property types, or to see the top five newly specially serviced loans download the November 2019 US CMBS Special Servicing Report: https://www.trepp.com/instantly-access-november-special-servicing. For daily CMBS and CRE commentary, follow @TreppWire on Twitter.

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