Announcing BMARK 2024-V12

By

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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

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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.

Access Loan Details

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

By

Michael Haas

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December 13, 2024

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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

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

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

By

Michael Haas

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December 10, 2024

0

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

By

Michael Haas

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December 6, 2024

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Office Distress Rate Climbs 70 Basis Points to 15.5% in November

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. The office sector reached a new high this month as it jumped 70 basis points to 15.5%.

The overall CRED iQ distress rate added 40 basis points and crossed into double digits for the first time this year at 10%. On a positive note, four of the six major property types that CRED iQ tracks saw decreases in November. The November print represents the third consecutive record high for the index. CRED iQ’s specially serviced rate added 40 basis points to 9.1%. The CRED iQ delinquency rate rose from 7.2% to 7.8% in November.

Segment Review

After taking a breather in October the office segment distress rate continued to climb—adding 70 basis points to 15.5%, a new high. Office remains at the top of all segments with respect to distress rate.

Retail continues its reign in the number two slot, with an 11.5% distress rate, shaving 20 basis points in November.

Right behind retail, multifamily has an 11.2% distress rate—adding 20 basis points to October. Multifamily has experienced the sharpest distress increase of all property types in 2024. The January 2024 multifamily distress rate was 2.6%, yielding a stunning 842 basis point increase in the distress rate over the course of 2024.

The hotel segment distress rate decreased by 40 basis points—right back to the September distress rate of 8.6% maintaining a secure, if not a bit distant 4^th place on the distress league tables.

Self-storage (1.7% –down from 3.6% last month), and industrial (0.6% –down from 1.2% last month) round out 5^th and 6^th place respectively.

Payment Status

Looking at the distressed loan payment status, 14.2% of the loans are current—a steep 400 point drop. Additionally, 2.7% of loans are attributed to late (but in the grace period) and 5.2% of loans were late (but less than 30 days DQ). When we combine these three metrics 22.1% of all loans were current / late within the grace period / less than 30 days delinquent –a reduction of 250 basis points from last month (adding to the 100BP reduction in our previous print)

Non-Performing Matured increased from 39.9% to 41.9%. Meanwhile, Performing Matured inched up from 16.7% in our October report to 16.9%. 90+ Days Delinquent shaved 30 basis points in November to 12.7%.

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 BMO 2024-5C8

By

Michael Haas

-

December 4, 2024

0

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

Access Loan Details

Deal Overview

The BMO 2024-5C8 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of approximately $991.8 million. The deal is jointly managed by prominent financial institutions including BMO, Deutsche Bank, Citigroup, Societe Generale, Barclays, UBS, and Goldman Sachs. The deal is collateralized by 40 loans and secured by 98 properties across a variety of sectors, including multifamily, retail, 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 58.1%, and the weighted average mortgage interest rate is 6.58%.

Key Metrics

The loan pool for BMO 2024-5C8 is structured to include a mix of amortizing and interest-only loans, with 3.0% of the mortgage pool having scheduled amortization. The remainder of the pool (97.0%) 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 1.68x. The weighted average net operating income (NOI) debt yield is 11.6%.

Geography & Property Types

A key strength of the BMO 2024-5C8 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Multifamily properties, including high rise, mid rise, garden, townhome, and low rise subtypes constitute 42.6% of the total balance, while retail properties account for 20.6% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, Atlanta, and Philadelphia.

Access Loan Detail

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 BANK5 2024-5YR12

By

Michael Haas

-

December 4, 2024

0

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

Access Loan Details

Deal Overview

The BANK5 2024-5YR12 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of approximately $876.0 million. The deal is jointly managed by prominent financial institutions including Bank of America, JP Morgan, Wells Fargo, and Morgan Stanley. The deal is collateralized by 27 loans and secured by 147 properties across a variety of sectors, including retail, mixed use, and manufactured housing. The deal’s weighted average loan-to-value (LTV) ratio of 57.9%, and the weighted average mortgage interest rate is 6.32%.

Key Metrics

The loan pool for BANK5 2024-5YR12is structured to include a mix of amortizing and interest-only loans, with 7.4% of the mortgage pool having scheduled amortization. The remainder of the pool (92.6%) 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 1.67x. The weighted average net operating income (NOI) debt yield is 11.2%.

Geography & Property Types

A key strength of the BANK5 2024-5YR12 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Retail properties, including anchored, super regional mall, unanchored, and single tenant subtypes constitute 20.2% of the total balance, while mixed used properties account for 17.1% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, Los Angeles, and Dallas.

Access Loan Details

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.

Extend and Pretend: Loan Modifications See the Fastest Growth, Along with Foreclosures

By

Michael Haas

-

November 21, 2024

0

Troubled Loan Workout Strategies: Continuing our Series

The CRED iQ research team zeroed in on workout strategies –exploring trends and resolutions for CRE securitized loans so far in 2024. This analysis included the workout strategies across CMBS, SBLL, CRE CLO and Freddie loans. Building upon our September report, our analysis compared the special servicer’s workout strategies from January 2024 with October 2024. Our previous report explored the period of January 2024 to August 2024. Our analysis compared workout strategies across $64.3 billion in loan balances (5,488 loans) in January of 2024 with $79.1 billion (6,169 loans) in October of 2024.

Top Workout Categories

The top 4 workout strategies used by special servicers from this dataset includes: 1) Successful Resolution 2) Foreclosure and 3) Modification or 4) REO.

2024 YTD October, the so-called “extend and pretend” strategy reigns supreme, notching the fastest growth rate of all workout strategies. Not surprisingly, loan modifications grew by 81.2% since January of this year.

Foreclosures are not far behind, with growth in that category reaching 79.6% this year, for the second most common workout strategy.

Full resolution (“Resolved”) was by far, the largest category by multiples, reaching $31.4B in October and seeing a 2024 category growth rate of 7.9%.

Finally, REO, the fourth largest category crested over $5.0 billion in October, with a 13.3% growth rate vs. January (ranking third in growth rates across the major workout reasons).

Other Workout Reasons

Perhaps most notable across all categories was the 53.1% drop in full payoffs in October, compared to January. Just $312.1 million in loans saw full payoffs in October, versus $700 million in January.

Extensions also saw a decrease since January, albeit more modest at 15%.

The fastest growing strategies in this secondary category of Other Workout Reasons, were Deed in Lieu of Foreclosure (80.7% increase), Bankruptcy (68.6% increase) and Note Sale (62.2% increase).

Notable Workout Example

Chelsea Gardens, a 474-unit multifamily property in the Atlanta market, is backed by a $37.1 million CRE CLO loan. The loan transferred to the special servicer in October 2024 due to non-monetary default and is expected to undergo foreclosure as the workout strategy. The loan fell 90 days delinquent in November 2024. The loan is scheduled to mature in February 2025 with an extended maturity date of February 2026.

The Chelsea Garden was appraised for $44.2 million ($93,249/unit) at origination in December 2021. The value of the asset has increased to $55.1 million ($116,245/unit) in February 2024. The asset had a below breakeven DSCR of 0.65 and was 82.7% occupied as of August 2024.

Access Full CRE CLO Loan Data

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 2024-5C2

By

Michael Haas

-

November 19, 2024

0

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

Access Loan Details

Deal Overview

The WFCM 2024-5C2 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of approximately $720.0 million. The deal is jointly managed by prominent financial institutions including Wells Fargo, Citigroup, Goldman Sachs, JP Morgan, and UBS. The deal is collateralized by 27 loans and secured by 138 properties across a variety of sectors, including retail, hospitality, 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 56.8%, and the weighted average mortgage interest rate is 6.35%.

Key Metrics

The loan pool for WFCM 2024-5C2 is structured to include a mix of amortizing and interest-only loans, with 22.0% of the mortgage pool having scheduled amortization. The remainder of the pool (78.0%) 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 1.87x. The weighted average net operating income (NOI) debt yield is 12.9%.

Geography & Property Types

A key strength of the WFCM 2024-5C2 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Retail properties, including anchored, super regional mall, and single tenant subtypes constitute 20.3% of the total balance, while hotel properties account for 17.2% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, Sacramento, and Detroit.

Access Loan Detail

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 Trends Downwards to 12.1%

By

Michael Haas

-

November 14, 2024

0

The CRED iQ research team focused upon CRE CLO distress this week. We wanted to explore how this marketplace has evolved since our previous report last month. The CRED iQ Distress rate gave back 97 basis points (falling to 12.1% from 13.07%) during the month, after adding 277 BP in our October print. In comparison to the CMBS Distress Rate of 9.6%, the CRE CLO sector remains by 250 basis points.

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). 47.0% of the properties within the distressed CRE CLO sector have reported a lower DSCR (NCF) compared to their underwritten DSCR. These numbers are based on the underwritten “as is” DSCRs and net operating income (NOI).

CRED iQ’s analysis uncovers that 67.1% of all distressed CRE CLOs are operating below a 1.00 DSCR, up from 62.3% last month. NOI is a key variable in calculating a loan’s DSCR which determines the strength and creditworthiness of a given loan.

Segment Analysis

Office continues its leadership in distress across all property types logging a distress rate of 18.4%, remaining mostly flat to last month’s print. While high, the office segment is off its 2024 distress peak of 21.3% in February.

Multifamily distress increased 140 basis points to 15.1% in October, compared to 13.7% last month. Multifamily remains firmly entrenched as the second most distressed segment.

Retail saw its distress rate decrease significantly from 11.1% to 7.2% — dropping two slots to the fourth most distressed CRE CLO property type. The hotel segment also saw a decrease in their distress rate to 7.7% and landing just above retail as the third most distressed CRE CLO property type.

Industrial saw a slight uptick to 1.7%, representing a 60-basis point increase from last month. Self-storage continued to operate without distress in October.

Payment Status

Looking across payment status, 31.4% of loans are performing matured, with another 32.4% non-performing matured, meaning 63.8% of the CRE CLO loans in our study are past their maturity dates –down slightly from 64.3% in last month’s report.

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 $70.8 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.

Announcing BMARK 2024-V11

By

Michael Haas

-

November 14, 2024

0

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

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Deal Overview

The BMARK 2024-V11 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of approximately $1.04 billion. The deal is jointly managed by prominent financial institutions including Deutsche Bank, Goldman Sachs, BMO, Barclays, and Citigroup. The deal is collateralized by 26 loans and secured by 62 properties across a variety of sectors, including retail, office, 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 54.7%, and the weighted average mortgage interest rate is 6.39%.

Key Metrics

The loan pool for BMARK 2024-V11 is structured to solely include interest-only loans, offering investors a steady income stream. The pool boasts a weighted average debt service coverage ratio (DSCR) of 1.84x. The weighted average net operating income (NOI) debt yield is 12.7%.

Geography & Property Types

A key strength of the BMARK 2024-V11 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Multifamily properties, including high rise, garden and mid rise subtypes constitute 23.2% of the total balance, while hotel properties account for 17.9% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, Atlanta, and Miami.

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