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November 2022 Delinquency Report

By
CRED iQ
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DQ = All delinquent CMBS loans in the conduit and SASB universe, including specially serviced and non-specially serviced loans
SS = All specially serviced CMBS loans in the conduit and SASB universe, including current, delinquent and REO
DQ + SS = All distressed CMBS loans in the conduit and SASB universe that are delinquent, specially serviced, or a combination of both

The CRED iQ delinquency rate for CMBS increased during the October 2022 reporting period, which was the second month-over-month increase over the past two years. This month, the delinquency rate, equal to the percentage of all delinquent specially serviced loans and delinquent non-specially serviced loans, for CRED iQ’s sample universe of $500+ billion in CMBS conduit and single asset single-borrower (SASB) loans was 3.28%, which was 28 bps higher than last month’s delinquency rate of 3.00%. CRED iQ’s special servicing rate, equal to the percentage of CMBS loans that are with the special servicer (delinquent and non-delinquent), declined slightly month-over-month to 4.73% from 4.79%. Aggregating the two indicators of distress – delinquency rate and special servicing rate – into an overall distressed rate (DQ + SS%) equals 5.14% of CMBS loans that are specially serviced, delinquent, or a combination of both. The overall distressed rate increased compared to the prior month’s distressed rate of 5.02%. These distressed rates typically track slightly higher than special servicing rates as most delinquent loans are also with the special servicer.

DQ = All delinquent CMBS loans in the conduit and SASB universe, including specially serviced and non-specially serviced loans
SS = All specially serviced CMBS loans in the conduit and SASB universe, including current, delinquent and REO
DQ + SS = All distressed CMBS loans in the conduit and SASB universe that are delinquent, specially serviced, or a combination of both

By property type, retail was the driver behind the overall increase in delinquency. The delinquency rate for retail increased 17% from 6.01% as of September 2022 to 7.06% as of October. This is the third consecutive month that the retail delinquency rate has increased. The last reporting period when retail delinquency was higher than 7% was six months ago in April 2022 when the rate was 7.37%. The retail sector has had the highest delinquency rate among all property types since May 2022.

One of the largest newly delinquent retail loans this month is secured by a regional mall. The $216 million Clackamas Town Center loan failed to pay off at its October 2022 maturity date. Prior to the maturity default, the loan had been current in payment throughout its term. The loan transferred to special servicing in July 2022 in anticipation of the maturity default. The loan collateral is a 1.4 million-sf regional mall located 10 miles outside of Portland, OR.

Aside from retail, delinquency rates for lodging (4.47%), multifamily (0.89%), and industrial (0.21%) exhibited month-over-month decreases during the October 2022 reporting period. The delinquency rate for loans secured by office properties (1.68%) was flat compared to the prior month.

Despite zero month-over-month change in delinquency for office loans, the special servicing rate for office increased modestly to 3.36%, compared to 3.31% from the prior month. Notable loan transfers to special servicing this month included a $47 million mortgage secured by One Westchase Center in Houston, TX and a $38.4 million mortgage secured by 1 South Broad Street in Philadelphia, PA. Both office buildings, which each have over 400,000 sf in NRA, are experiencing issues with low occupancy that is likely impacting the respective borrowers’ refinancing efforts. One Westchase Center was approximately 71% occupied as of June 2022 and occupancy declined to 51% at 1 South Broad Street after its primary tenant, Wells Fargo, vacated at year-end 2020.

The lodging sector exhibited the sharpest decline in its special servicing rate compared to September 2022, decreasing to 6.43% during October 2022 — equal to a 6% decline. Declines in special servicing rates for retail and multifamily were nominal.

DQ + SS = All distressed CMBS loans in the conduit and SASB universe that are delinquent, specially serviced, or a combination of both

CRED iQ’s CMBS distressed rate (DQ + SS%) by property type accounts for loans that qualify for either delinquent or special servicing subsets. This month, the overall distressed rate for CMBS increased to 5.14%, which followed a relatively sharp increase in the overall delinquency rate. The increase in the overall CMBS distressed rate was primarily caused by maturity defaults of loans secured by retail properties, including a concentration of regional malls. Two such examples are a $418.5 million mortgage secured by the 1.9 million-sf Palisades Center Mall in West Nyack, NY and a $195 million mortgage secured by the 1.1 million-sf Valencia Town Center in Santa Clarita, CA. Both loans transferred to special servicing in late-September 2022 due to issues related to maturity default risk. For additional information about these two loans, click View Details below:

[View Details][View Details]
LoanPalisades Center MallValencia Town Center
Balance$418,500,000$195,000,000
Special Servicer Transfer Date9/27/20229/26/2022
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About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers to CRED iQ use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. Our data platform is powered by over $2.0 trillion of CMBS, CRE CLO, SBLL, and GSE Agency loan and property data.

CRED-iQ-November-2022-Delinquency-ReportDownload

Q3 2022 CMBS Auction Recap

By
CRED iQ
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0

Properties and mortgage notes securing more than $320 million in outstanding CMBS debt were auctioned during Q3 2022, according to CRED iQ’s observations of impending losses for investors. The volume of CMBS auctions during Q3 2022 increased compared to Q2 2022 when 28 auctions with approximately $300 million in outstanding CMBS debt took place. Sales through an auction can take a couple months to close; however, sale transactions can be delayed or even fail to close after a due diligence process. Additional complications, as of late, include the acquisition loan repricing from the prospective buyers’ perspective. Of the 28 auctions from the previous quarter, there were nine auctioned assets with outstanding CMBS debt of $68 million that remained unresolved as of the September 2022 reporting period.

CRED iQ monitored over 40 individual CMBS property and note sales through their respective auction processes during Q3 2022. Approximately 65% of those auctions, 26 in total, involved distressed sales facilitated by a special servicer. Of the 26 specially serviced assets, there were 16 REO properties with titles that transferred to respective CMBS trusts. Special servicers are tasked with liquidating these properties, sometimes after a period of stabilization, for maximum proceeds on behalf of CMBS certificate holders.

Of the 16 REO properties that were auctioned, the average holding period between title acquisition and auction date was approximately 2 years. The shortest holding period was slightly over three months, and the longest holding period was just under six years. The quickest sale from REO title date to auction date was an 86-key Hampton Inn & Suites located in Shelby, NC. The hotel transferred to special servicing in November 2020 due to delinquency despite previously receiving pandemic-related debt relief in June 2020. The special servicer acquired title on behalf of the CMBS trust April 2022 and the property was auctioned in August 2022. Notably, the high bid price from the auction did not meet the asset’s pre-determined reserve price but the high bid was subsequently approved post-auction with an anticipated sale closing in mid-October 2022.

By deal vintage, auctions over the past three months were most prevalent among 2017 vintage securitizations. Approximately 25% of the auctions during Q3 2022 were associated with a $725 million single-borrower large loan CMBS securitization. The underlying mortgage had an October 2022 maturity date and is secured by 138 lodging properties across 27 states. As of September 2022, the borrower had requested a maturity extension and waivers to unencumber select properties from the mortgage debt. The property release waivers allowed for the sales of certain properties in the portfolio, including some via auction.

Like the previous quarter, hotels were the most common property type for auctions with 29 attempted sales during Q3 2022. Retail properties also comprised a high quantity of auctions with 10 attempted sales. By market, the auctioned assets were dispersed geographically. Houston and Dallas were notable MSAs with exposure to multiple auctions of CMBS properties.

CRED iQ observed insights into pricing discovery for properties that resulted from assets’ final bids. Approximately half of the Q3 2022 auctioned CMBS properties were appraised in 2020 or later. Excluding assets with pre-2020 appraisals, approximately 45% of the auctioned assets were observed to have received final bids that were higher than most recent appraisals. One notable final bid premium over the asset’s most recent appraisal was a 13,905-sf former freestanding Walgreens located outside of Detroit, MI that was converted into a Footlocker; the single-tenant building had a final bid that was over 85% higher than its February 2022 appraisal.

When properties traded at a discount to the most recent appraisals, the average difference was approximately -16%. The most severe discount from appraisal to final bid, equal to -97%, was a 57-key Fairfield Inn & Suites hotel located in Jackson, MI. The property is part of a 12-hotel portfolio that secures a $45 million mortgage that is in maturity default. Several of the other hotels in the portfolio also participated in auctions throughout 2022.

In summary, the average difference between final bid prices and most recent appraisals was approximately -6%. Isolating for specially serviced assets resulted in a smaller average difference of -4%. Lodging and retail property types were the only sectors with multiple auction events. Lodging properties, on average, exhibited an 8% deficit between recent appraisals and final auction bids. Retail properties fared better with a +8% variance between most recent appraisals and final bids.

For access to the underlying data behind this research, please contact us: team@cred-iq.com.

Chart-Finance-x-CRED-iQ-Q3-2022-CMBS-Auction-RecapDownload

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers to CRED iQ use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. Our data platform is powered by over $2.0 trillion of CMBS, CRE CLO, SBLL, and GSE Agency loan and property data.

Retail Refinance Recon: Mid-Atlantic Region

By
CRED iQ
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0

CRED iQ curated a regional catalog of commercial real estate loans with maturities coming due over the next three years. The namesake Retail Refi Recon focuses on loans secured by retail properties located in the Mid-Atlantic region of the U.S, which includes New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, West Virginia, and Washington, DC. Also included are distressed loans that have transferred to special servicing prior to 2022 maturity dates as well as REO assets slated for liquidation.

To download a PDF of this white paper or request access to the underlying data, please click the link below:

Explore Mid-Atlantic Retail Market

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform designed to unlock investment, financing, and leasing opportunities. CRED iQ provides real-time property, loan, tenant, ownership, and valuation data for over $2.0 trillion of commercial real estate.

CMBS – September 2022 Loan Dispositions and Payoffs

By
CRED iQ
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0

CMBS conduit transactions incurred approximately $65 million in realized losses during September 2022 via the workout of distressed assets. CRED iQ identified 15 workouts classified as dispositions, liquidations, or discounted payoffs in September 2022. Of the 15 workouts, only two of the assets were resolved without a loss. Of the 13 workouts resulting in losses, severities for the month of September ranged from less than 1% to 100%, based on outstanding balances at disposition. Aggregate realized losses in September were 69% lower than the amount of losses in August. On a monthly basis, realized losses for CMBS conduit and SBLL transactions averaged approximately $137.5 million year-to-date.

Workouts were split evenly between property types with five office, retail, and lodging dispositions apiece. Distressed workouts for office properties this month had the highest level of aggregate realized losses (over $28 million) and the highest average loss severity (56.5%). Additionally, the liquidation of an office property represented the largest individual realized loss from out observations. A former Verizon Wireless Center in Albuquerque, NM had outstanding debt totaling $20.5 million before it was liquidated in August 2022. The vacant property had been REO since May 2018 and spent more than five years in special servicing. Realized losses to the CMBS trust equaled approximately $11.9 million, equal to a 57.9% loss severity based on the asset’s outstanding balance prior to disposition.

The largest loss by severity was associated with North Branch Outlet Center, a retail property located 45 miles north of Minneapolis, MN. The 134,480-sf outlet center became REO in October 2016 and the total workout period took over six years. The asset had outstanding debt of $8.2 prior to its liquidation and was resolved with a 100% loss severity. The property was 52% occupied at the time of disposition and occupancy was unable to be materially improved throughout the workout period.

The largest workout by outstanding debt amount was the liquidation of the $47.8 million Shops at Boca Park REO asset. Shops at Boca Park is a 277,472-sf retail property located in Las Vegas, NV. The asset had been in special servicing since December 2015 and was resolved with a 4.6% loss severity based on the balance at disposition.

Excluding defeased loans, there was approximately $7 billion in securitized debt among CMBS conduit, SBLL, and Freddie Mac securitizations that was paid off or liquidated in September, which was approximately a 40% increase compared to $5 billion in August 2022. In September, 3.6% of the loan resolutions were categorized as dispositions, liquidations, or discounted payoffs. The percentage of distressed workouts was 7.7% in the prior month. Approximately 42% of the loans were paid off with prepayment penalties.

By property type, multifamily had the highest total of outstanding debt pay off in September with 53% of the total by balance. The relatively higher percentage of multifamily debt payoff was driven by refinancing of floating rate debt. Office and retail had the next highest outstanding debt pay off with 11% of the total. Among the largest individual payoffs was a $390 million mortgage secured by Vornado’s 38,814-sf retail condo at 666 Fifth Avenue, located in Midtown Manhattan.

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform designed to unlock investment, financing, and leasing opportunities. CRED iQ provides real-time property, loan, tenant, ownership, and valuation data for over $2.0 trillion of commercial real estate.

CRED-iQ-CMBS-September-2022-Dispositions-and-PayoffsDownload

Market Delinquency Tracker – October 2022

By
CRED iQ
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0

CRED iQ monitors distressed rates and market performance for nearly 400 MSAs across the United States, covering over $900 billion in outstanding commercial real estate (CRE) debt. Distressed rates (DQ + SS%) include loans that are specially serviced, delinquent, or a combination of both. Distressed rates and month-over-month changes for data reported as of September 2022 are presented below for the 50 largest MSAs, broken out by property type for a granular view of distress by market-sector.

Slightly more than half of the 50 largest MSAs tracked by CRED iQ exhibited month-over-month decreases in the percentage of distressed CRE loans within the CMBS universe. There were 27 markets, or 54% of the Top 50, with declines in distressed rates for commercial mortgages compared to the prior month. For the first time in the past three months, total markets with month-over-month improvements in distressed rates outnumbered markets with distressed rate increases. Markets with the highest level of improvements in distress included Minneapolis (-1.15%), Hartford (-0.82%), Milwaukee (-0.80%). To be fair, these three markets are also among those with the highest percentage of distressed loans overall. Conversely, the Philadelphia market (+1.95%) had the largest percentage increase in distressed commercial real estate loans during September 2022.

Taking a more granular analysis of the Top 50 markets, CRED iQ further delineated individual market distressed rates by property type for a market-sector view. Much of the improvement in distress across markets can be attributed to the lodging sector. The lodging property type was associated with seven of the 10 sharpest percentage declines in distressed rates across market-sectors during September 2022. There were numerous examples of loans that were rehabilitated and returned to master servicers this month after being with special servicers. Among them included the $23.6 million Embassy Suites St. Louis loan, which positively impacted the St. Louis lodging market (-8.7%), the $12.1 million HGI Memphis Wolfchase Galleria loan, which improved the Memphis hotel market (-6.9%), and the $72.6 million Holiday Inn – 6th Avenue loan, which helped lower distress in the New York City lodging market (-4.0%).

Loans secured by office properties were a common denominator among the 10 highest percentage increases in distressed loans across market-sectors. MSAs for Columbus, OH, Denver, Chicago, and Bridgeport exhibited notably high increases in office distress this month. The market-sector with the largest increase in the percentage of distressed loans was Philadelphia – Mixed Use, which equaled 30.3%. The sharp increase was caused by the $368 million 1500 Market Street loan, which transferred to special servicing in August 2022 due to maturity default. The loan is secured by a 1.8 million-sf mixed-use (office/retail) building in Center City Philadelphia.

The Minneapolis MSA has the highest overall distressed rate at 20.6%, which was a decrease compared to the prior month distressed rate of 21.8%. Cleveland (9.9%), Birmingham (9.6%), Hartford (8.6%), and Portland (8.5%) comprise the remaining markets with the highest rates of distress. Portland was a new addition to the Top 5 distressed markets this month. The Jacksonville market (0.1%) had the lowest percentage of distress among the Top 50 MSAs for the second consecutive month.

For the full CRED DQ Report, download here:

The-CRED-DQ-Market-Delinquency-Tracker-October-2022Download
 MSA – Property Type  DQ/SS
(millions) 		DS/SS
(%)		Monthly
Change
Allentown-Bethlehem-Easton, PA-NJ MSA$77.72.5%0.0%
Allentown – Hotel$0.00.0%0.0%
Allentown – Industrial$0.00.0%0.0%
Allentown – Multifamily$0.00.0%0.0%
Allentown – Office$58.619.1%-2.1%
Allentown – Other$0.00.0%0.0%
Allentown – Retail$19.15.0%0.0%
Allentown – Self Storage$0.00.0%0.0%
Atlanta – Atlanta-Sandy Springs-Marietta, GA MSA$524.11.9%0.1%
Atlanta – Hotel$140.86.9%-0.3%
Atlanta – Industrial$0.00.0%0.0%
Atlanta – Multifamily$0.00.0%0.0%
Atlanta – Office$69.43.3%0.7%
Atlanta – Other$0.00.0%0.0%
Atlanta – Retail$313.815.6%0.9%
Atlanta – Self Storage$0.00.0%0.0%
Austin – Austin-Round Rock, TX MSA$150.11.7%-0.1%
Austin – Hotel$50.56.4%-1.3%
Austin – Industrial$0.00.0%0.0%
Austin – Multifamily$40.10.7%0.0%
Austin – Office$0.00.0%0.0%
Austin – Other$10.12.6%0.1%
Austin – Retail$49.46.4%0.4%
Austin – Self Storage$0.00.0%0.0%
Baltimore – Baltimore-Towson, MD MSA$374.13.8%-0.3%
Baltimore – Hotel$50.210.6%-1.0%
Baltimore – Industrial$0.00.0%0.0%
Baltimore – Multifamily$3.80.1%0.0%
Baltimore – Office$57.53.3%-0.1%
Baltimore – Other$11.64.5%0.1%
Baltimore – Retail$250.922.7%0.2%
Baltimore – Self Storage$0.00.0%0.0%
Birmingham – Birmingham-Hoover, AL MSA$283.09.6%-0.1%
Birmingham – Hotel$0.00.0%0.0%
Birmingham – Industrial$0.00.0%0.0%
Birmingham – Multifamily$2.10.2%0.0%
Birmingham – Office$95.218.8%0.2%
Birmingham – Other$1.24.7%4.7%
Birmingham – Retail$184.426.2%0.7%
Birmingham – Self Storage$0.00.0%0.0%
Boston – Boston-Cambridge-Quincy, MA-NH MSA$131.50.7%0.1%
Boston – Hotel$26.71.6%0.0%
Boston – Industrial$0.00.0%0.0%
Boston – Multifamily$0.00.0%0.0%
Boston – Office$14.50.2%0.2%
Boston – Other$0.00.0%0.0%
Boston – Retail$90.28.3%1.4%
Boston – Self Storage$0.00.0%0.0%
Bridgeport – Bridgeport-Stamford-Norwalk, CT MSA$182.44.7%0.8%
Bridgeport – Hotel$37.834.1%-10.2%
Bridgeport – Industrial$0.00.0%0.0%
Bridgeport – Multifamily$0.00.0%0.0%
Bridgeport – Office$134.812.9%2.6%
Bridgeport – Other$9.82.5%0.0%
Bridgeport – Retail$0.00.0%0.0%
Bridgeport – Self Storage$0.00.0%0.0%
Charlotte – Charlotte-Gastonia-Concord, NC-SC MSA$256.63.4%0.2%
Charlotte – Hotel$71.47.7%-0.4%
Charlotte – Industrial$0.00.0%0.0%
Charlotte – Multifamily$0.00.0%0.0%
Charlotte – Office$0.00.0%0.0%
Charlotte – Other$100.540.0%0.0%
Charlotte – Retail$84.78.2%0.6%
Charlotte – Self Storage$0.00.0%0.0%
Chicago – Chicago-Naperville-Joliet, IL-IN-WI MSA$2,331.48.0%0.8%
Chicago – Hotel$851.432.9%1.1%
Chicago – Industrial$0.00.0%0.0%
Chicago – Multifamily$58.90.6%0.0%
Chicago – Office$940.311.3%2.7%
Chicago – Other$209.08.3%0.1%
Chicago – Retail$271.99.3%0.0%
Chicago – Self Storage$0.00.0%0.0%
Cincinnati – Cincinnati-Middletown, OH-KY-IN MSA$118.63.1%0.0%
Cincinnati – Hotel$87.229.6%-3.6%
Cincinnati – Industrial$0.00.0%0.0%
Cincinnati – Multifamily$2.30.1%0.0%
Cincinnati – Office$0.00.0%0.0%
Cincinnati – Other$6.82.6%0.1%
Cincinnati – Retail$22.24.0%0.0%
Cincinnati – Self Storage$0.00.0%0.0%
Cleveland – Cleveland-Elyria-Mentor, OH MSA$402.49.9%0.3%
Cleveland – Hotel$85.247.4%7.8%
Cleveland – Industrial$0.00.0%0.0%
Cleveland – Multifamily$5.60.3%0.0%
Cleveland – Office$130.014.5%-0.6%
Cleveland – Other$173.943.0%-0.2%
Cleveland – Retail$7.71.1%0.0%
Cleveland – Self Storage$0.00.0%0.0%
Columbus, OH – Columbus, OH MSA$221.13.2%-0.2%
Columbus, OH – Hotel$37.513.4%-11.5%
Columbus, OH – Industrial$11.73.0%-0.4%
Columbus, OH – Multifamily$22.20.5%0.0%
Columbus, OH – Office$30.24.8%2.9%
Columbus, OH – Other$0.00.0%0.0%
Columbus, OH – Retail$119.615.7%0.1%
Columbus, OH – Self Storage$0.00.0%0.0%
Dallas – Dallas-Fort Worth-Arlington, TX MSA$279.30.9%0.1%
Dallas – Hotel$84.32.5%-0.8%
Dallas – Industrial$1.70.1%0.0%
Dallas – Multifamily$50.40.2%0.1%
Dallas – Office$83.42.8%1.3%
Dallas – Other$4.90.2%0.0%
Dallas – Retail$54.62.6%0.1%
Dallas – Self Storage$0.00.0%0.0%
Denver – Denver-Aurora, CO MSA$325.82.0%0.4%
Denver – Hotel$22.82.8%-0.3%
Denver – Industrial$0.00.0%0.0%
Denver – Multifamily$8.00.1%0.1%
Denver – Office$182.88.9%2.8%
Denver – Other$94.39.8%0.0%
Denver – Retail$17.91.4%0.0%
Denver – Self Storage$0.00.0%0.0%
Detroit – Detroit-Warren-Livonia, MI MSA$290.42.9%-0.4%
Detroit – Hotel$103.915.5%-2.0%
Detroit – Industrial$0.00.0%0.0%
Detroit – Multifamily$0.00.0%0.0%
Detroit – Office$14.60.6%-0.2%
Detroit – Other$21.92.7%0.1%
Detroit – Retail$150.010.5%-0.5%
Detroit – Self Storage$0.00.0%0.0%
Hartford – Hartford-West Hartford-East Hartford, CT MSA$199.68.6%-0.8%
Hartford – Hotel$16.718.8%-26.1%
Hartford – Industrial$0.00.0%0.0%
Hartford – Multifamily$0.00.0%0.0%
Hartford – Office$25.39.5%0.7%
Hartford – Other$0.00.0%0.0%
Hartford – Retail$157.654.6%7.8%
Hartford – Self Storage$0.00.0%0.0%
Houston – Houston-Sugar Land-Baytown, TX MSA$1,047.84.4%-0.2%
Houston – Hotel$387.041.0%-6.1%
Houston – Industrial$0.00.0%0.0%
Houston – Multifamily$26.80.2%-0.1%
Houston – Office$483.914.0%0.7%
Houston – Other$44.36.5%0.0%
Houston – Retail$105.82.8%0.0%
Houston – Self Storage$0.00.0%0.0%
Indianapolis – Indianapolis-Carmel, IN MSA$219.24.0%-0.4%
Indianapolis – Hotel$106.416.9%-0.7%
Indianapolis – Industrial$0.00.0%0.0%
Indianapolis – Multifamily$40.41.4%0.0%
Indianapolis – Office$61.810.5%-2.6%
Indianapolis – Other$4.91.9%0.0%
Indianapolis – Retail$5.61.9%0.2%
Indianapolis – Self Storage$0.00.0%0.0%
Jacksonville – Jacksonville, FL MSA$5.00.1%-0.2%
Jacksonville – Hotel$0.00.0%-2.5%
Jacksonville – Industrial$0.00.0%0.0%
Jacksonville – Multifamily$3.10.1%0.0%
Jacksonville – Office$0.00.0%0.0%
Jacksonville – Other$0.00.0%0.0%
Jacksonville – Retail$1.90.5%0.0%
Jacksonville – Self Storage$0.00.0%0.0%
Kansas City – Kansas City, MO-KS MSA$120.52.2%-0.5%
Kansas City – Hotel$74.227.5%0.2%
Kansas City – Industrial$0.00.0%0.0%
Kansas City – Multifamily$3.80.1%0.0%
Kansas City – Office$0.00.0%0.0%
Kansas City – Other$21.110.3%0.0%
Kansas City – Retail$21.33.8%-3.3%
Kansas City – Self Storage$0.00.0%0.0%
Las Vegas – Las Vegas-Paradise, NV MSA$275.31.2%0.1%
Las Vegas – Hotel$0.00.0%0.0%
Las Vegas – Industrial$0.00.0%0.0%
Las Vegas – Multifamily$45.40.7%0.7%
Las Vegas – Office$0.00.0%0.0%
Las Vegas – Other$0.00.0%0.0%
Las Vegas – Retail$229.95.0%-0.1%
Las Vegas – Self Storage$0.00.0%0.0%
Los Angeles – Los Angeles-Long Beach-Santa Ana, CA MSA$595.21.1%0.1%
Los Angeles – Hotel$118.01.8%0.2%
Los Angeles – Industrial$0.00.0%0.0%
Los Angeles – Multifamily$13.30.1%0.0%
Los Angeles – Office$62.80.6%0.3%
Los Angeles – Other$85.32.7%0.1%
Los Angeles – Retail$315.85.0%0.3%
Los Angeles – Self Storage$0.00.0%0.0%
Louisville – Louisville/Jefferson County, KY-IN MSA$72.12.7%0.0%
Louisville – Hotel$0.00.0%0.0%
Louisville – Industrial$0.00.0%0.0%
Louisville – Multifamily$0.00.0%0.0%
Louisville – Office$0.00.0%0.0%
Louisville – Other$0.00.0%0.0%
Louisville – Retail$72.115.6%0.9%
Louisville – Self Storage$0.00.0%0.0%
Memphis – Memphis, TN-AR-MS MSA$85.43.6%0.3%
Memphis – Hotel$12.06.0%-6.9%
Memphis – Industrial$0.00.0%0.0%
Memphis – Multifamily$6.90.6%0.0%
Memphis – Office$0.00.0%0.0%
Memphis – Other$5.417.2%1.2%
Memphis – Retail$61.116.4%3.1%
Memphis – Self Storage$0.00.0%0.0%
Miami – Miami-Fort Lauderdale-Pompano Beach, FL MSA$268.71.1%-0.2%
Miami – Hotel$11.00.2%0.0%
Miami – Industrial$0.00.0%0.0%
Miami – Multifamily$0.00.0%0.0%
Miami – Office$4.00.2%0.0%
Miami – Other$8.80.6%0.0%
Miami – Retail$245.04.5%-0.7%
Miami – Self Storage$0.00.0%0.0%
Milwaukee – Milwaukee-Waukesha-West Allis, WI MSA$196.38.3%-0.8%
Milwaukee – Hotel$5.64.0%-12.1%
Milwaukee – Industrial$0.00.0%0.0%
Milwaukee – Multifamily$0.00.0%0.0%
Milwaukee – Office$83.116.9%-0.9%
Milwaukee – Other$0.60.5%0.0%
Milwaukee – Retail$107.025.2%1.8%
Milwaukee – Self Storage$0.00.0%0.0%
Minneapolis – Minneapolis-St. Paul-Bloomington, MN-WI MSA$1,728.420.6%-1.1%
Minneapolis – Hotel$223.940.0%-5.2%
Minneapolis – Industrial$0.00.0%0.0%
Minneapolis – Multifamily$0.00.0%0.0%
Minneapolis – Office$92.24.4%-0.3%
Minneapolis – Other$4.11.0%0.0%
Minneapolis – Retail$1,408.277.3%-0.3%
Minneapolis – Self Storage$0.00.0%0.0%
Nashville – Nashville-Davidson-Murfreesboro-Franklin, TN MSA$68.41.1%0.0%
Nashville – Hotel$59.04.5%-0.2%
Nashville – Industrial$0.00.0%0.0%
Nashville – Multifamily$0.00.0%0.0%
Nashville – Office$0.00.0%0.0%
Nashville – Other$0.00.0%0.0%
Nashville – Retail$9.41.3%0.0%
Nashville – Self Storage$0.00.0%0.0%
New Orleans – New Orleans-Metairie-Kenner, LA MSA$124.33.7%-0.3%
New Orleans – Hotel$60.05.5%-0.7%
New Orleans – Industrial$0.00.0%0.0%
New Orleans – Multifamily$0.00.0%-0.9%
New Orleans – Office$27.25.0%-0.2%
New Orleans – Other$14.810.1%0.5%
New Orleans – Retail$22.23.7%0.5%
New Orleans – Self Storage$0.00.0%0.0%
New York City – New York-Northern New Jersey-Long Island, NY-NJ-PA MSA$5,239.64.1%-0.1%
New York City – Hotel$920.024.0%-4.0%
New York City – Industrial$64.71.6%-0.8%
New York City – Multifamily$192.80.5%-0.2%
New York City – Office$1,409.43.1%-0.3%
New York City – Other$1,439.86.2%0.4%
New York City – Retail$1,213.09.9%1.8%
New York City – Self Storage$0.00.0%0.0%
Orlando – Orlando-Kissimmee, FL MSA$179.71.8%0.0%
Orlando – Hotel$84.63.2%0.2%
Orlando – Industrial$0.00.0%0.0%
Orlando – Multifamily$0.00.0%0.0%
Orlando – Office$47.010.6%-2.0%
Orlando – Other$0.00.0%0.0%
Orlando – Retail$48.15.2%0.9%
Orlando – Self Storage$0.00.0%0.0%
Philadelphia – Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA$671.13.3%2.0%
Philadelphia – Hotel$106.012.0%2.8%
Philadelphia – Industrial$0.00.0%0.0%
Philadelphia – Multifamily$41.40.5%0.0%
Philadelphia – Office$115.93.2%-0.1%
Philadelphia – Other$388.530.3%28.7%
Philadelphia – Retail$19.30.9%0.0%
Philadelphia – Self Storage$0.00.0%0.0%
Phoenix – Phoenix-Mesa-Scottsdale, AZ MSA$268.41.4%0.2%
Phoenix – Hotel$23.41.5%-0.7%
Phoenix – Industrial$0.00.0%0.0%
Phoenix – Multifamily$60.60.5%0.5%
Phoenix – Office$40.91.9%0.1%
Phoenix – Other$8.61.3%0.2%
Phoenix – Retail$134.98.3%0.0%
Phoenix – Self Storage$0.00.0%0.0%
Pittsburgh – Pittsburgh, PA MSA$65.01.4%0.4%
Pittsburgh – Hotel$15.98.7%-0.9%
Pittsburgh – Industrial$0.00.0%0.0%
Pittsburgh – Multifamily$0.00.0%0.0%
Pittsburgh – Office$30.63.2%0.9%
Pittsburgh – Other$18.54.6%2.7%
Pittsburgh – Retail$0.00.0%0.0%
Pittsburgh – Self Storage$0.00.0%0.0%
Portland – Portland-Vancouver-Beaverton, OR-WA MSA$586.08.5%-0.3%
Portland – Hotel$357.039.4%-4.9%
Portland – Industrial$0.00.0%0.0%
Portland – Multifamily$0.00.0%0.0%
Portland – Office$12.93.0%-0.2%
Portland – Other$0.00.0%0.0%
Portland – Retail$216.043.1%0.6%
Portland – Self Storage$0.00.0%0.0%
Raleigh – Raleigh-Cary, NC MSA$21.90.6%0.0%
Raleigh – Hotel$15.37.4%-1.2%
Raleigh – Industrial$0.00.0%0.0%
Raleigh – Multifamily$0.00.0%0.0%
Raleigh – Office$0.00.0%0.0%
Raleigh – Other$6.74.6%0.2%
Raleigh – Retail$0.00.0%0.0%
Raleigh – Self Storage$0.00.0%0.0%
Richmond – Richmond, VA MSA$67.42.1%0.0%
Richmond – Hotel$0.00.0%0.0%
Richmond – Industrial$0.00.0%0.0%
Richmond – Multifamily$0.00.0%0.0%
Richmond – Office$0.00.0%0.0%
Richmond – Other$13.08.9%0.0%
Richmond – Retail$54.411.9%0.8%
Richmond – Self Storage$0.00.0%0.0%
Riverside – Riverside-San Bernardino-Ontario, CA MSA$279.52.7%-0.2%
Riverside – Hotel$51.110.5%-1.8%
Riverside – Industrial$0.00.0%0.0%
Riverside – Multifamily$0.00.0%0.0%
Riverside – Office$0.00.0%0.0%
Riverside – Other$0.00.0%-2.9%
Riverside – Retail$228.411.3%0.2%
Riverside – Self Storage$0.00.0%0.0%
Sacramento – Sacramento-Arden-Arcade-Roseville, CA MSA$16.60.3%0.0%
Sacramento – Hotel$5.61.4%-0.3%
Sacramento – Industrial$0.00.0%0.0%
Sacramento – Multifamily$0.00.0%0.0%
Sacramento – Office$0.00.0%0.0%
Sacramento – Other$11.02.8%0.0%
Sacramento – Retail$0.00.0%0.0%
Sacramento – Self Storage$0.00.0%0.0%
Salt Lake City – Salt Lake City, UT MSA$21.00.5%0.0%
Salt Lake City – Hotel$21.07.4%-0.4%
Salt Lake City – Industrial$0.00.0%0.0%
Salt Lake City – Multifamily$0.00.0%0.0%
Salt Lake City – Office$0.00.0%0.0%
Salt Lake City – Other$0.00.0%0.0%
Salt Lake City – Retail$0.00.0%0.0%
Salt Lake City – Self Storage$0.00.0%0.0%
San Antonio – San Antonio, TX MSA$140.92.3%0.0%
San Antonio – Hotel$16.46.7%-0.2%
San Antonio – Industrial$0.00.0%0.0%
San Antonio – Multifamily$7.90.2%0.0%
San Antonio – Office$0.00.0%0.0%
San Antonio – Other$0.00.0%0.0%
San Antonio – Retail$116.620.2%0.7%
San Antonio – Self Storage$0.00.0%0.0%
San Diego – San Diego-Carlsbad-San Marcos, CA MSA$55.80.5%0.0%
San Diego – Hotel$39.42.0%-0.1%
San Diego – Industrial$0.00.0%0.0%
San Diego – Multifamily$4.20.1%0.0%
San Diego – Office$0.00.0%0.0%
San Diego – Other$9.31.3%0.0%
San Diego – Retail$2.90.2%0.0%
San Diego – Self Storage$0.00.0%0.0%
San Francisco – San Francisco-Oakland-Fremont, CA MSA$201.60.8%0.0%
San Francisco – Hotel$109.04.5%-1.0%
San Francisco – Industrial$0.00.0%0.0%
San Francisco – Multifamily$0.00.0%0.0%
San Francisco – Office$0.00.0%0.0%
San Francisco – Other$38.61.4%0.0%
San Francisco – Retail$54.04.5%0.5%
San Francisco – Self Storage$0.00.0%0.0%
San Jose – San Jose-Sunnyvale-Santa Clara, CA MSA$32.00.2%-0.2%
San Jose – Hotel$32.00.5%-0.6%
San Jose – Industrial$0.00.0%0.0%
San Jose – Multifamily$0.00.0%0.0%
San Jose – Office$0.00.0%0.0%
San Jose – Other$0.00.0%0.0%
San Jose – Retail$0.00.0%0.0%
San Jose – Self Storage$0.00.0%0.0%
Seattle – Seattle-Tacoma-Bellevue, WA MSA$73.50.3%-0.1%
Seattle – Hotel$73.55.3%-1.4%
Seattle – Industrial$0.00.0%0.0%
Seattle – Multifamily$0.00.0%0.0%
Seattle – Office$0.00.0%0.0%
Seattle – Other$0.00.0%0.0%
Seattle – Retail$0.00.0%0.0%
Seattle – Self Storage$0.00.0%0.0%
St. Louis – St. Louis, MO-IL MSA$205.14.9%-0.7%
St. Louis – Hotel$1.70.6%-8.7%
St. Louis – Industrial$0.00.0%0.0%
St. Louis – Multifamily$0.00.0%-0.4%
St. Louis – Office$0.00.0%0.0%
St. Louis – Other$19.64.0%0.0%
St. Louis – Retail$183.819.4%-0.3%
St. Louis – Self Storage$0.00.0%0.0%
Tampa – Tampa-St. Petersburg-Clearwater, FL$133.71.5%0.0%
Tampa – Hotel$59.18.6%-0.9%
Tampa – Industrial$0.00.0%0.0%
Tampa – Multifamily$0.00.0%0.0%
Tampa – Office$23.53.6%0.1%
Tampa – Other$0.00.0%0.0%
Tampa – Retail$51.17.0%0.3%
Tampa – Self Storage$0.00.0%0.0%
Tucson – Tucson, AZ MSA$159.34.8%-0.1%
Tucson – Hotel$0.00.0%-1.4%
Tucson – Industrial$0.00.0%0.0%
Tucson – Multifamily$0.00.0%0.0%
Tucson – Office$0.00.0%0.0%
Tucson – Other$0.00.0%0.0%
Tucson – Retail$159.319.9%0.7%
Tucson – Self Storage$0.00.0%0.0%
Virginia Beach – Virginia Beach-Norfolk-Newport News, VA-NC MSA$185.04.0%0.0%
Virginia Beach – Hotel$0.00.0%0.0%
Virginia Beach – Industrial$21.28.0%0.0%
Virginia Beach – Multifamily$0.00.0%-0.2%
Virginia Beach – Office$0.00.0%-0.3%
Virginia Beach – Other$0.00.0%0.0%
Virginia Beach – Retail$163.822.9%1.3%
Virginia Beach – Self Storage$0.00.0%0.0%
Washington, DC – Washington-Arlington-Alexandria, DC-VA-MD-WV MSA$534.21.8%0.2%
Washington, DC – Hotel$49.04.4%-2.1%
Washington, DC – Industrial$0.00.0%0.0%
Washington, DC – Multifamily$0.00.0%0.0%
Washington, DC – Office$377.64.9%1.4%
Washington, DC – Other$32.92.0%0.0%
Washington, DC – Retail$74.82.2%-0.8%
Washington, DC – Self Storage$0.00.0%0.0%
Grand Total$20,091.92.9%0.1%

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers to CRED iQ use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. Our data platform is powered by over $2.0 trillion of CMBS, CRE CLO, SBLL, Ginnie Mae, FHA/HUD, and Freddie Mac loan and property data.

October 2022 Delinquency Report

By
CRED iQ
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DQ = All delinquent CMBS loans in the conduit and SASB universe, including specially serviced and non-specially serviced loans
SS = All specially serviced CMBS loans in the conduit and SASB universe, including current, delinquent and REO
DQ + SS = All distressed CMBS loans in the conduit and SASB universe that are delinquent, specially serviced, or a combination of both

The CRED iQ delinquency rate for CMBS declined during the September 2022 reporting period, one month after its first month-over-month increase in over two years. This month, the delinquency rate, equal to the percentage of all delinquent specially serviced loans and delinquent non-specially serviced loans, for CRED iQ’s sample universe of $500+ billion in CMBS conduit and single asset single-borrower (SASB) loans was 3.00%, which was 21 bps lower than last month’s delinquency rate of 3.21%. CRED iQ’s special servicing rate, equal to the percentage of CMBS loans that are with the special servicer (delinquent and non-delinquent), declined month-over-month to 4.79% from 4.91%. The special servicing rate is still at its highest level since May 2022 despite this month’s decline. Aggregating the two indicators of distress – delinquency rate and special servicing rate – into an overall distressed rate (DQ + SS%) equals 5.02% of CMBS loans that are specially serviced, delinquent, or a combination of both. The overall distressed rate decreased compared to the prior month’s distressed rate of 5.10%. These distressed rates typically track slightly higher than special servicing rates as most delinquent loans are also with the special servicer.

DQ = All delinquent CMBS loans in the conduit and SASB universe, including specially serviced and non-specially serviced loans
SS = All specially serviced CMBS loans in the conduit and SASB universe, including current, delinquent and REO
DQ + SS = All distressed CMBS loans in the conduit and SASB universe that are delinquent, specially serviced, or a combination of both

By property type, there were variations in trends among delinquency rates this month. The office and retail sectors exhibited month-over-month increases in delinquency while the lodging (5.09%), multifamily (0.91%), and industrial (0.23%) sectors exhibited delinquency rate declines. The office delinquency rate increased to 1.68% in September, which was 11% higher than August. One of the more notable loans to become delinquent this month was a $51 million mortgage secured by 700 Broadway, a 424,453-sf office tower located in Denver, CO. The loan was reported as 30 days delinquent as of September 2022. Overall, the office delinquency rate is still lower than it was a year ago when it equaled 2.19%.

The delinquency rate for retail increased modestly to 6.01%, compared to 5.91% a month prior. This is the second consecutive month that the retail delinquency rate has increased. The retail sector has had the highest delinquency rate among all property types since May 2022. A $125 million mortgage secured by 1880 Broadway, an 84,240-sf retail condo located in the Upper West Side of Manhattan, defaulted at maturity on September 6, 2022 and contributed to the increase in retail delinquency.

Special servicing rates across property types were either down or flat in September 2022 compared to the prior month with the exception of the office sector. The special servicing rate for loans secured by office collateral increased to 3.31%. This is the second consecutive month that the office special servicing rate has increased. Additionally, the special servicing rate for office is higher than it was 12 months ago when it equaled 2.89%. The retail sector had the highest special servicing rate among all property types, equaling 10.04%.

The most dramatic improvement in special servicing rates across property types was for the lodging sector. The lodging special servicing rate declined to 6.84%, which was a 14% decrease compared to August. Several notable lodging loans were worked out and returned to the master servicer over the past two months, including a $72.6 million mortgage secured by the Holiday Inn – 6th Avenue, a 226-key hotel located in the Chelsea submarket of Manhattan, NY. The collateral property was sold in June 2022 for $80.3 million and the mortgage was assumed and brought current.

DQ + SS = All distressed CMBS loans in the conduit and SASB universe that are delinquent, specially serviced, or a combination of both

CRED iQ’s CMBS distressed rate (DQ + SS%) by property type accounts for loans that qualify for either delinquent or special servicing subsets. This month, the overall distressed rate for CMBS decreased to 5.02% in tandem with declines in the overall delinquency and special servicing rates. The decline in the overall CMBS distressed rate was driven primarily by cures of loans secured by lodging properties this month. Conversely, two of the largest loans to became delinquent in September were a $126.8 million mortgage secured by 750 Lexington Avenue, a 382,256-sf mixed-use property (office and retail) located in Midtown Manhattan, and the aforementioned $125 million 1880 Broadway loan. For additional information about these two loans, click View Details below:

[View Details][View Details]
Loan750 Lexington Avenue1880 Broadway
Balance$126,826,217$125,000,000
Loan Status30 Days DelinquentNon-Performing Matured
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About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers to CRED iQ use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. Our data platform is powered by over $2.0 trillion of CMBS, CRE CLO, SBLL, and GSE Agency loan and property data.

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Most Active Markets – Multifamily Originations YTD 2022

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CRED iQ
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CRED iQ tracked over $85 billion in multifamily originations for year-to-date 2022, including loans that were securitized in Fannie Mae, Ginnie Mae, Freddie Mac, and CMBS conduit transactions. As a data, analytics, and valuation partner to the commercial real estate community, CRED iQ helps CRE professionals uncover financing, leasing, and investment opportunities. One of our many solutions is identifying the most active markets for loan originations. The highest volume of loan originations is typically in the multifamily sector for any commercial property type on a yearly basis. According to the Mortgage Bankers Association, multifamily originations were up 24% year-over-year in Q2 2022 and up 18% in Q2 2022 compared to Q1.

Loans from Fannie Mae securitizations accounted for 41% of new originations by aggregate balance. CRED iQ included approximately $35.5 billion in Fannie Mae loan originations through August 2022 in observations. Through the first half of 2022, Fannie Mae issued approximately $34.7 billion in mortgage back securities, comprising of nearly 1,900 loans. The Washington, DC and Phoenix markets have dominated Fannie Mae issuance so far in 2022 with approximately $1.7 billion in multifamily originations for each MSA.

Freddie Mac securitizations accounted for 29% of YTD 2022 multifamily originations within the subset. New multifamily originations that were securitized in CRE CLO (12%), Ginnie Mae (11%), Conduit (4%) and Single Asset Single Borrower (3%) transactions made up the remainder.

Loan origination activity this year has been heavily concentrated in primary markets, which accounted for approximately 56% of total multifamily originations through YTD 2022. Loans secured by multifamily collateral in secondary markets made up 26% of new origination volume while loans secured by properties in tertiary markets made of 18%. Altogether, the 10 most active markets for 2022 multifamily originations accounted for 37% of total volume.

In total, the New York-Northern New Jersey MSA was the most active market with $4.7 billion in originations, accounting for 5.5% of aggregate loan origination volume. The Dallas-Fort Worth MSA was the second most active market with $3.9 billion in multifamily originations, accounting for 4.6% of the total. Phoenix (4.3%), Houston (4.0%) and Washington, DC (3.7%) rounded out the five most active multifamily markets for loan originations in 2022.

Notable secondary markets with the highest levels of origination activity included Columbus, OH (1.5% of total aggregate volume), Las Vegas (1.4%), Indianapolis (1.3%), Tampa (1.2%), and San Antonio (1.2%). Each of these secondary markets tallied over $1 billion in multifamily originations in 2022, between Fannie Mae, Ginnie Mae, Freddie Mac, and private-label CMBS securitizations. Comparing YTD 2022 origination activity to 2021, we find some common markets as leaders in volume. For example, San Antonio led all secondary markets in origination volume during 2021 and ranks fifth through August 2022. Conversely, Oklahoma City has the second highest volume of multifamily originations, among secondary markets, in 2021 but has failed to surpass the top 30 secondary markets so far in 2022.

For those interested in building lending pipelines into tertiary markets, the Ogden, UT, Dayton, OH, and Durham, NC markets were among the most active. CRED iQ tracked over $380 million in 2022 multifamily originations for each of these markets.

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers to CRED iQ use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. Our data platform is powered by over $2.0 trillion of CMBS, CRE CLO, SBLL, Ginnie Mae, FHA/HUD, and Freddie Mac loan and property data.

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CMBS – Maturity Defaults Surge Higher

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CRED iQ
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Compared to previous months, CRED iQ observed a surge of CMBS loans with non-performing maturity balloons in August 2022. There was approximately $4.7 billion in outstanding loans that were characterized as non-performing maturities as of August 2022. This figure excluded debt with properties that have entered into foreclosure as well as REO assets but included loans that may have transferred to special servicing prior to scheduled maturity dates. In fact, nearly all loans (99%) identified as non-performing maturity defaults have already transferred to special servicing. Many loans, approximately 36% of the aggregate outstanding balance, had monetary defaults before maturity came due, prompting the transfers to special servicing. However, maturity concerns were the primary reason for special servicing transfers for most of the non-performing maturity loans. Approximately 19% of the loans by balance transferred to special servicing due to a maturity default and an additional 20% of the loans transferred to special servicing for imminent maturity default.

Altogether, the aggregate outstanding debt for non-performing maturity balloons was 35% higher than July 2022, when the total was approximately $3.5 billion. The surge comes amid a rising rate environment that adds difficulty to the refinancing process. If cash flow issues are also present in the underlying collateral, then prolonged workouts may be required.

Additionally notable, the increase in the amount of maturity defaults coincides with a higher volume of loans coming due for maturity. In December 2021, CRED iQ published a report looking ahead to scheduled maturities in 2022. On a monthly basis, July 2022 had the third-highest total of scheduled matures with $2.3 billion, which was one month prior to the August surge in non-performing maturity loans. Scheduled maturities for the remainder of 2022 are concentrated in October and December, creating opportunities for maturity defaults to continue to manifest at a relatively high rate.

Our observations included loans securitized in both single-asset single-borrower and conduit securitizations. Maturity defaults were split evenly, by outstanding balance, between both types of securitizations. Further examination shows that the amount of maturity defaults within the conduit subset has remained fairly level over the past three months, ranging from $2.3 billion to $2.5 billion. This indicates the recent surge in August can be attributed to single-asset single-borrower securitization loans. The amount of outstanding debt securitized in single-asset single-borrower transactions increased, on a net basis, by approximately $1.3 billion during August 2022.

One such example was the $465 million Greenway Plaza loan, which was securitized in a 2017 single-asset single borrower securitization. The loan is secured by a 20-building 4.2 million-sf office park located in Houston, TX. The Greenway Plaza loan transferred to special servicing in July 2022 after a maturity default in May 2022. A forbearance agreement expired in July 2022 that rendered the status of the loan as non-performing.

Maturity defaults can also severely impact conduit securitizations in the form of adverse selection. Take the UBSBB 2012-C2 securitization for example. The transaction had eight specially serviced assets remaining as of September 2022, including three REO assets. The remaining five loans have all failed to pay off at maturity, leaving all of the outstanding debt in the securitization in the hands of special servicing workouts.

By property type, loans secured by retail and lodging account for the highest percentages of non-performing matured loans. Isolating our view to only CMBS conduit securitizations, retail loans accounted for approximately 67% of all non-performing matured loans. Loans secured by lodging properties accounted for 20%. The high concentration of retail loans is made of primarily of regional mall collateral. The Cumberland Mall in Vineland, NJ and the Greenwood Mall in Bowling Green, KY are two of the more recent examples of regional malls securing loans that have defaulted at maturity in the past month.

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers to CRED iQ use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. Our data platform is powered by over $2.0 trillion of CMBS, CRE CLO, SBLL, Ginnie Mae, FHA/HUD, and Freddie Mac loan and property data.

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Specially Serviced Loans – September 2022

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CRED iQ
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In this Weekly Asset Review (WAR Report), CRED iQ highlights five distressed properties that have transferred to special servicing in August and September 2022. CRED iQ’s special servicing rate for CMBS conduit and SASB transactions has shown a recent uptick. In August 2022, the special servicing rate was 4.91%, representing a 10% increase compared to the prior month. Featured properties in this week’s review include a regional mall in Northern NJ with loan maturity issues, a pair of hotels in King of Prussia, PA, and a suburban office property in Greensboro, NC.

CRED iQ valuations factor in a base-case (most likely), a downside (significant loss of tenants), and dark scenarios (100% vacant). For access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and borrower contact information, sign up for a free trial here.

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Bridgewater Commons

640,210 sf, Regional Mall/Lifestyle Center, Bridgewater, NJ  [View Details]

This $300 million loan transferred to the special servicer on August 10, 2022 due to an impending maturity default. The loan is scheduled to mature in November 2022 and a timely payoff is unlikely given the current refinancing environment for regional malls coupled with a decline in the collateral property’s value since loan origination. One of the special servicer’s first steps of workout is ordering an appraisal to determine the valuation of the collateral in relation to outstanding debt.

The loan is secured by two adjacent properties: a 546,411-sf portion of a regional mall known as Bridgewater Commons and a 93,799-sf lifestyle center known as The Village at Bridgewater Commons. The retail development is located approximately 40 miles west of Manhattan, NY. The mall has three traditional anchor boxes, although two of the spaces do not serve as collateral for the $300 million mortgage. Macy’s owns and operates a 223,222-sf store and there is a 129,129-sf vacant box that was formerly operated and owned by Lord & Taylor. The largest collateral tenant is Bloomingdales with a 150,525-sf lease, accounting for 23.5% of NRA, that expires in January 2029. Of note, The Village at Bridgewater Commons lost its second-largest tenant, Crate & Barrel, when it vacated at the end of 2021. For a valuation report and loan-level details, click here.

Bridgewater Commons | GSMS 2012-BWTR
Property NameBridgewater Commons
Address400 Commons Way
Bridgewater, NJ 08807
Outstanding Balance$300,000,000
Interest Rate3.34%
Maturity Date11/1/2022
Most Recent Appraisal$570,000,000 ($890/sf)
Most Recent Appraisal Date10/3/2012
CRED iQ Base-Case ValueRequires Log In

King of Prussia Hotel Portfolio

306 keys, Lodging, King of Prussia, PA  [View Details]

This $33.8 million loan transferred to the special servicer on August 30, 2022 due to imminent default. The loan, which has an interest rate of 5.02%, is secured by two hotels in King of Prussia, PA, located approximately 20 miles northwest of Philadelphia, PA. The loan has an upcoming maturity date in December 2022, but a timely payoff may be in doubt given the recent transfer to special servicing. Forbearance for the loan was previously granted in October 2020 to provide pandemic-related relief. However, average occupancy across the hotels, 43% for the trailing 12 months ended June 2022, has not recovered to pre-pandemic levels and aggregate net cash flow across the two hotels was barely positive for the same time period.

Property NameSize (keys)AddressAllocated Loan AmountMost Recent AppraisalMost Recent Appraisal DateCRED iQ Base-Case Value
Crowne Plaza226260 Mall Boulevard
King of Prussia, PA 19406		$16,881,024$24,800,000 ($109,735/key)10/16/2015Requires Log In
Fairfield Inn & Suites80258 Mall Boulevard
King of Prussia, PA 19406		$16,881,024$24,800,000 ($310,000/key)10/16/2015Requires Log In
Total306$33,762,048$49,600,000 ($162,092/key)
  • Crowne Plaza
  • The larger of the two hotels serving as collateral for the newly transferred loan has 226 keys and operates as a Crowne Plaza pursuant to a franchise agreement that expires in November 2025. The property was constructed in 1969 and is the older of the two adjacent hotels. Additionally, the Crowne Plaza has 24,088 sf of meeting space. Occupancy at the hotel for the trailing 12 months ended June 2022 averaged 37%. For the valuation report and loan-level details, click here.
Crowne Plaza – King of Prussia | CGCMT 2016-GC36
  • Fairfield Inn & Suites
  • The smaller of the two properties is an 80-key limited-service hotel that operates as a Fairfield Inn & Suites under a franchise agreement that expires in June 2030. The hotel was built in 1995 to provide overflow lodging for the adjacent Crowne Plaza. As such, many of the Crowne Plaza’s amenities are shared with guests at the Fairfield Inn & Suites. Average occupancy at the hotel was approximately 57% for the trailing 12 months ended June 2022. For the valuation report and loan-level details, click here.
Fairfield Inn & Suites – King of Prussia | CGCMT 2016-GC36

Signature Place Office

299,897-sf, Suburban Office, Greensboro, NC  [View Details]

This $21.2 million loan transferred to the special servicer on September 2, 2022, which was one month ahead of its scheduled October 2022 maturity date. The borrower had planned to market the property for sale ahead of the loan’s maturity date; however, the transfer to special servicing indicates imminent maturity default. The loan is secured by a four-story office building located three miles outside of downtown Greensboro, SC.

The office building has been approximately 75% occupied for the past several years. Occupancy at the property initially declined from 95% to 75% in 2016 when the property’s former largest tenant, Novartis, vacated. There has been limited leasing activity since the Novartis departure and the property has, at times, had difficulty maintaining an occupancy level at 75%. For a valuation report and loan-level details, click here.

Signature Place Office | GSMS 2012-GCJ9
Property NameSignature Place Office
Address3200 Northline Avenue
Greensboro, NC 27408
Outstanding Balance$21,242,556
Interest Rate6.00%
Maturity Date10/6/2022
Most Recent Appraisal$36,000,000 ($120/sf)
Most Recent Appraisal Date7/12/2012
CRED iQ Base-Case ValueRequires Log In

Best Western Coyote Point

99 keys, Limited-Service Hotel, San Mateo, CA  [View Details]

This $8.2 million loan transferred to the special servicer on August 12, 2022 due to delinquency. The loan first became 30 days delinquent in May 2022 and was over 60 days delinquent as of September 2022. The loan is secured by a 99-key limited-service hotel located in San Mateo, CA. The hotel, which is flagged as a Best Western, averaged 74% occupancy during 2021. Occupancy during 2021 represented a significant recovery from a pandemic-induced low occupancy mark of 47% during 2020. Updated occupancy and performance figures for 2022 were not available. For the valuation report and loan-level details, click here.

Best Western Plus Coyote Point – COMM 2013-CR10
Property NameBest Western Plus Coyote Point
Address480 N Bayshore Blvd
San Mateo, CA 94401
Outstanding Balance$8,206,981
Interest Rate5.72%
Maturity Date7/6/2023
Most Recent Appraisal$18,100,000 ($182,828/key)
Most Recent Appraisal Date6/11/2013
CRED iQ Base-Case ValueRequires Log In

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CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers to CRED iQ use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. Our data platform is powered by over $2.0 trillion of CMBS, CRE CLO, SBLL, Ginnie Mae, FHA/HUD, and Freddie Mac loan and property data.

Jeff Kurtz Joins CRED IQ as Director of Sales

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Tech-focused data, analytics and valuation firm, CRED iQ, has hired Jeff Kurtz as Director of Sales. Kurtz joins CRED iQ with over ten years of enterprise sales experience within the commercial real estate data & analytics industry. Most recently Jeff was the Head of Analytics Sales at MountainSeed where he helped build and bring to market their analytics product. Prior to MountainSeed, Jeff helped grow commercial real estate data & analytics sales at REIS, Oxford Economics and CompStak.


I’m extremely excited to join this team and help CRED iQ grow. What Mike and Bill have built is truly something special and it’s only a matter of time before CRED iQ becomes an essential part of daily life for CRE and Capital Market investors. The CRE industry is starving for this type of technology and data and CRED iQ is the firm that can deliver it.

Jeff Kurtz


“Jeff’s commercial real estate knowledge and enterprise sales background really impressed us from the start,” said CRED iQ Co Founder, Mike Haas. “His eagerness to help communicate and implement customer feedback will be a key advantage for CRED iQ as we continue to launch new products for the CRE industry.

CRED iQ Co-Founder, Bill Petersen said, ”We’re excited to have Jeff join our team. His background and in-depth understanding of CRE technologies is a great fit for us.”

Start A Free 7-Day Trial

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers to CRED iQ use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. Our data platform is powered by over $2.0 trillion of CMBS, CRE CLO, SBLL, Ginnie Mae, FHA/HUD, and Freddie Mac loan and property data.

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