Extend & Pretend Trend – Modifications Double within 12 Months

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January 21, 2025

A CRED iQ Preliminary Analysis

DATA HEREIN PROVIDED TO CRED IQ IS FROM A PRELIMINARY PROSPECTUS AND MAY BE AMENDED OR SUPPLEMENTED PRIOR TO TIME OF SALE

Deal Overview

The BBCMS 2025-C32 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of $999.7 million. The deal is jointly managed by prominent financial institutions including Barclays, KeyBanc, SG Americas, Deutsche Bank, BMO, Wells Fargo, and Citigroup. The deal is collateralized by 49 loans and secured by 77 properties across a variety of sectors, including mixed use, retail, and multifamily. The strategic geographic distribution of these properties ensures balanced exposure across major markets. The deal’s weighted average loan-to-value (LTV) ratio of 58.4%, and the weighted average mortgage interest rate is 6.83%.

Key Metrics

The loan pool for BBCMS 2025-C32 is structured to include a mix of amortizing and interest-only loans, with 35.0% of the mortgage pool having scheduled amortization. The remainder of the pool (65.0%) consists of interest-only payments throughout the loan term, offering investors a steady income stream. The pool boasts a weighted average debt service coverage ratio (DSCR) of 1.60. The weighted average net operating income (NOI) debt yield is 12.2%.

Geography & Property Types

A key strength of the BBCMS 2025-C32 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Mixed Use properties constitute 22.8% of the total balance, while retail properties account for 22.6% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in Los Angeles, Baltimore, and Philadelphia.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

CRE CLO Distress Rate Reaches a New Record High of 13.8% in December – Driven by a 180BP Increase in Special Servicing Transfers

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January 17, 2025

As 2025 begins to unfold, we wanted to calibrate our outlook for the new year, by looking backward. This week, we explore how the CRE CLO ecosystem performed during December, along with full-year 2024.

The CRED iQ CRE CLO distress rate added 60 basis points in December – reaching a new high of 13.8%. Underpinning the distress rate, December’s delinquency rate came in largely flat at 11.8%; while the special servicing rate saw a 180-basis point increase, reaching 9%.

The CRED iQ distress rate includes any loan reported 30 days delinquent or worse, past their maturity, specially serviced, or a combination of these. We also examined the most recent property-level net operating income figures and compared them to underwritten expectations.

CRED iQ’s analysis revealed that that 61.9% of CRE CLOs loans are operating below a 1.00 DSCR (NCF), up from 59.2% last month. Net Cash Flow (NCF) is a key variable in calculating a loan’s DSCR which determines the strength and creditworthiness of a given loan.

Payment Status

Looking across payment status in December, 33.7% of loans are performing matured (up 180 basis points from last month). 31.6% of loans were non-performing matured (down from 38.4% last month), meaning 65.3% of the CRE CLO loans in our study are past their maturity dates, down from 70.3% in last month’s report. Delinquent loans that have not past their maturity date accounted for 20.1% of the distressed loans, up from 19.5% in the previous month.

Regional Analysis

Our analysis broke out CRE CLO assets to their respective MSAs to understand how the distress has manifested at the MSA level.

Month-over-month, Kansas City moved into the #3 position with 45.5% of their loans currently in distress.

Indianapolis-Carmel remains in first place with a 70.6% distress rate—while trimming 270 basis points from the November print (73.3%) of their CRE CLO loans in some form of distress.

Columbus Ohio moves into second place with a flat December print of 46.7%. Richmond, VA falls out of the top three.

Analysis Scope & Methodology

CRED iQ consolidated all of the loan-level performance data for every outstanding CRE CLO loan to measure the underlying risks associated with these transitional assets. Our team examined $64.3 billion in active CRE CLO loans. Many of these loans were originated in 2021 at times where cap rates were low, valuations high, low interest rates, and are starting to run into maturity issues given the spike in rates.

Some of the largest issuers of CRE CLO debt over the past five years include MF1, Arbor, LoanCore, Benefit Street Partners, Bridge Investment Group, FS Rialto, and TPG. The vast majority of the $79.1 billion in CRE CLO loans are structured with floating rates with 3-year loan terms equipped with loan extension options if certain financial hurdles are met.

Access CRED iQ Today

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

Office Distress Rate Eclipses 17%

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January 9, 2025

CRED iQ’s Overall Distress Rate Reaches a Fourth Straight Record High

The CRED iQ research team evaluated payment statuses reported for each loan (securitized by CMBS financing), along with special servicing status as part of our monthly distress update. In this special year-end report, we add several new dimensions to get a sense of how distress rates evolved.

The CRED iQ overall distress rate added 60 basis points, logging its fourth straight record high of 10.6%. The CRED iQ delinquency rate increased to 8.6% from 7.7% in the November print. Similarly, the CRED iQ special serving rate added 70 basis points to 9.8%

Segment Review

The office segment saw its largest overall distress rate increase of the year in December—rising from 15.5% in our November print to 17.2% in December. Office maintains a healthy lead as the property type with the most distress, and the largest distress gain in December across all property types.

Taking over the number two spot from retail, multifamily notched a distress rate of 12.5%, an increase of 130 basis points since November. As a reminder, the multifamily segment started the year with a distress rate of just 2.6%

Retail was one of three property types that improved their distress rate. Retails distress rate was reduced by 60 basis points to 10.9% –now the third most distressed segment

Hotels added 130 basis points to log a distress rate of 9.9% in December—landing in the number four slot.

Industrial and self-storage saw modest reductions in their tiny distress rates of 0.8% and 1.6% respectively.

Payment Status

Our team explored how payment status has evolved over the course of 2024. Some takeaways:

19.4% of loans were current in December of ‘23, versus 13.5% as we finished 2024
Combining current with late but in the grace period and late by last than 30 days delinquent, 2024 watched this ‘wider current’ metric sink from 27.3% to 19.6%, a 770 basis point decrease
Combining performing matured with non-performing matured, December ‘23 logged 49.3% while December ’24 logged 62.2% in the maturity category

Geographic Review

We wanted to add a geographic perspective to this special year-end report. Our analysis shows a very close three-way race for the most distressed MSA in the US. The top three MSAs and their market destress rates are Rochester, NY (33.8%), Providence-New Bedford-Fall River, RI/MA (38.7%) and Minneapolis-St. Paul-Bloomington, MN/WI (38.1%).

On the other end of the scale, Sacramento CA, San Diego CA and Columbus OH were the least distressed in our study logging distress rates of 0.9%, 1.4%, and 1.4% respectively.

Historical Perspective

Finally, we extended the date ranges to show distress trending dating back to July of 2022 to gain a wider viewpoint as we jump into 2025.

Office Loan Highlight

The $205.4 million SBLL loan ($347/SF) backed by the 2400 Market Street office property in Philadelphia defaulted on the December 2024 maturity, resulting in a Performing Matured loan status. Servicer commentary indicates a maturity extension is in process.

The 591,878 SF mid-rise office property is in the Market Street West submarket. Built in 1929 and renovated in 2018, the property was valued at $317.3 million ($536/SF) at underwriting in October 2021. The property was most recently 99% occupied and had a DSCR of 0.91.

Analysis Methodology

It’s important to note that CRED iQ’s distress rate factors in all CMBS properties that are securitized in conduits and single-borrower large loan deal types. CRED iQ tracks Freddie Mac, Fannie Mae, Ginnie Mae, and CRE CLO loan metrics in separate analyses.

CRED iQ’s distress rate aggregates the two indicators of distress – delinquency rate and specially serviced rate – yielding the distress rate. The index includes any loan with a payment status of 30+ days delinquent or worse, any loan actively with the special servicer, and includes non-performing and performing loans that have failed to pay off at maturity.

Access CRED iQ Today

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

Announcing WFCM 2025-5C3

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January 8, 2025

A CRED iQ Preliminary Analysis

DATA HEREIN PROVIDED TO CRED IQ IS FROM A PRELIMINARY PROSPECTUS AND MAY BE AMENDED OR SUPPLEMENTED PRIOR TO TIME OF SALE

Deal Overview

The WFCM 2025-5C3 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of $833.5 million. The deal is jointly managed by Wells Fargo, Goldman Sachs, JP Morgan, UBS, and Citigroup. The deal is collateralized by 30 loans and secured by 63 properties across a variety of sectors, including multifamily, office, and hospitality. The strategic geographic distribution of these properties ensures balanced exposure across major markets. The deal’s weighted average loan-to-value (LTV) ratio of 59.4%, and the weighted average mortgage interest rate is 6.93%.

Key Metrics

The loan pool for WFCM 2025-5C3 is structured to include a mix of amortizing and interest-only loans, with 20.1% of the mortgage pool having scheduled amortization. The remainder of the pool (79.9%) consists of interest-only payments throughout the loan term. The pool boasts a weighted average debt service coverage ratio (DSCR) of 1.52x. The weighted average net operating income (NOI) debt yield is 11.6%.

Geography & Property Types

A key strength of the WFCM 2025-5C3 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Multifamily properties, including garden, low-rise, and mid-rise subtypes constitute 30.0% of the total balance, while office properties account for 23.9% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, San Francisco, and Los Angeles.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

If you would like to learn more about CRED iQ’s products and services, please contact team@cred-iq.com or (215) 220-6776. You can also visit us at cred-iq.com

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER

CRE CLO Distress Rate Gives up Gains from Last Month: Adds 113 Basis Points to a New Record High of 13.23%

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December 19, 2024

Access Full CRE CLO Loan Data

As our final report of 2024, the CRED iQ research team focused upon CRE CLO distress. We wanted to explore how this marketplace has evolved since our previous report last month. After giving back 97 BP in our November report, The CRED iQ Distress reversed that progress by reaching a new record high of 13.23%.

The CRED iQ distress rate includes any loan reported 30 days delinquent or worse, past their maturity, specially serviced, or a combination of these. We also examined the most recent property-level net operating income figures and compared them to underwritten expectations.

Given the rapid surge in interest rates, these floating-rate loans have shown significant declines in debt-service-coverage-ratios (DSCR). CRED iQ’s analysis uncovers that 59.2% of CRE CLOs loans are operating below a 1.00 DSCR (NCF), down from 62.3% last month. Net Cash Flow (NCF) is a key variable in calculating a loan’s DSCR which determines the strength and creditworthiness of a given loan.

Payment Status

Looking across payment status, 31.9% of loans are performing matured (flat to last month’s print), with 38.4% non-performing matured (up from 32.4% last month), meaning 70.3% of the CRE CLO loans in our study are past their maturity dates up from 63.8% in last month’s report. Delinquent loans that have not past their maturity date accounted for 19.5% of the distressed loans, down from 23.3% in the previous month.

Regional Analysis

Our readers have asked us to examine CRE CLO distress on a regional-level and we are pleased to add that dimension to this report. Our analysis broke out CRE CLO assets to their respective MSAs to understand how the distress has manifested at the MSA level.

Indianapolis-Carmel landed solidly in first place with 73.3% of their CRE CLO loans in some form of distress.

The Indiana MSA was followed by Richmond, VA with 57.8% of their loans in distress. Columbus Ohio rounds out the top three with a CRE CLO distress rate of 46.7%.

Elsewhere in Ohio, the Cleveland-Elyria-Mentor MSA Ohio had one of the lowest CRE CLO distress rates at 2.8%, followed by Austin-Round Rock Texas at 1.3%.

Analysis Scope & Methodology

CRED iQ consolidated all of the loan-level performance data for every outstanding CRE CLO loan to measure the underlying risks associated with these transitional assets. Our team examined $64.3 billion in active CRE CLO loans. Many of these loans were originated in 2021 at times where cap rates were low, valuations high, low interest rates, and are starting to run into maturity issues given the spike in rates.

Some of the largest issuers of CRE CLO debt over the past five years include MF1, Arbor, LoanCore, Benefit Street Partners, Bridge Investment Group, FS Rialto, and TPG. The vast majority of the $79.1 billion in CRE CLO loans are structured with floating rates with 3-year loan terms equipped with loan extension options if certain financial hurdles are met.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

Announcing BMARK 2024-V12

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December 16, 2024

A CRED iQ Preliminary Analysis

DATA HEREIN PROVIDED TO CRED IQ IS FROM A PRELIMINARY PROSPECTUS AND MAY BE AMENDED OR SUPPLEMENTED PRIOR TO TIME OF SALE

Deal Overview

The BMARK 2024-V12 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of approximately $752.2 million. The deal is jointly managed by prominent financial institutions including Goldman Sachs, Deutsche Bank, BMO, Barclays, and Citigroup. The deal is collateralized by 31 loans and secured by 156 properties across a variety of sectors, including multifamily, hospitality, and retail. The strategic geographic distribution of these properties ensures balanced exposure across major markets. The deal’s weighted average loan-to-value (LTV) ratio of 58.4%, and the weighted average mortgage interest rate is 6.64%.

Key Metrics

The loan pool for BMARK 2024-V12 is structured to include a mix of amortizing and interest-only loans, with 0.6% of the mortgage pool having scheduled amortization. The remainder of the pool (99.4%) consists of interest-only payments throughout the loan term, offering investors a steady income stream. The pool boasts a weighted average debt service coverage ratio (DSCR) of 1.74x. The weighted average net operating income (NOI) debt yield is 12.7%.

Geography & Property Types

A key strength of the BMARK 2024-V12 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Multifamily properties, including mid-rise, garden, high-rise, and low-rise subtypes constitute 27.3% of the total balance, while hospitality properties account for 25.8% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, Colorado Springs, and Houston.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

2024 In Review: CRED iQ’s Most-Read Research

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December 13, 2024

6: Loan Modifications Swell 195% in 12 Months: CRED iQ

As 2024 winds down, we wanted to take a moment and reflect upon a year that was both challenging and transformational. This week, we are pleased to present our top ten research reports. Here they are!

Number 1: CRE CLO Distress Rates Surge over 440% in 12 Months

“Arbor is not alone.” Immediately following the issues associated with Arbor, our team revealed that the distress exposure went well beyond Arbor. This became our most read research of 2024 and launched a thematic focus on the CRE CLO ecosystem.

Number 2: CMBS Apartment Distress Rates up 185% in last 6 Months; Overall Rate Climbs to 8.62% for all CRE

Multifamily’ s escalating distress rates was a major story throughout 2024. This report revealed some of the earliest signs of this trend, which landed in the number 2 slot.

Number 3: CRED iQ’s CRE CLO Top Issuer Rankings

CRE CLO issuers were in focus in 2024. Our rankings report, number three most read in 2024, was of great interest to our readers.

Number 4: Over 200 Million Square Feet of Office Leases set to Expire

The office sector unprecedented headwinds in 2024 and looming lease expirations were a major forecasting and risk management focus. This important report lands at number 4 in our rankings.

Number 5: The Wall of Maturities Morphs into the Wave of Modifications

“Extend and Pretend” was the story for maturing loans in 2024. Our editors’ choice research came in at number 5.

The Best of the Rest

7: Multifamily logged its Largest Monthly Increase in Distress in over 18 Months

8: CRED iQ’s Distress Rate Sets a New Record, Led by Multifamily

9: CRE Valuation Trends in 2023

10: CRE CLO Distress Rates By Issuer – August 2024 Update

Looking Forward

Next week, CRED iQ will release our 2025 Almanac which includes our anticipated Maturities Outlook. An invaluable resource for all CRE professionals. Navigate risk while harvesting opportunities in the year ahead! Stay tuned!

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

Announcing BBCMS 2024-5C31

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December 10, 2024

A CRED iQ Preliminary Analysis

DATA HEREIN PROVIDED TO CRED IQ IS FROM A PRELIMINARY PROSPECTUS AND MAY BE AMENDED OR SUPPLEMENTED PRIOR TO TIME OF SALE

Deal Overview

The BBCMS 2024-5C31 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of approximately $872.5 million. The deal is jointly managed by prominent financial institutions including Barclays, BMO, Citigroup, Deutsche Bank, Keybanc, and Societe Generale. The deal is collateralized by 39 loans and secured by 55 properties across a variety of sectors, including retail, multifamily, and mixed use. The strategic geographic distribution of these properties ensures balanced exposure across major markets. The deal’s weighted average loan-to-value (LTV) ratio of 59.9%, and the weighted average mortgage interest rate is 6.61%.

Key Metrics

The loan pool for BBCMS 2024-5C31is structured to include a mix of amortizing and interest-only loans, with 1.6% of the mortgage pool having scheduled amortization. The remainder of the pool (98.4%) consists of interest-only payments throughout the loan term, offering investors a steady income stream. The pool boasts a weighted average debt service coverage ratio (DSCR) of 1.64x. The weighted average net operating income (NOI) debt yield is 11.5%.

Geography & Property Types

A key strength of the BBCMS 2024-5C31CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Retail properties, including anchored, super regional mall, and shadow anchored subtypes constitute 34.1% of the total balance, while multifamily properties account for 33.8% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, Boston, and San Diego.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

CRED iQ’s Overall Distress Rate Reaches Double Digits

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December 6, 2024