CRED iQ Valuation Updates – Specially Serviced Loans

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June 24, 2021

This week, CRED iQ calculated real-time valuations for five specially serviced loans that have recently transferred to special servicing. The CRED iQ valuations factor in a base-case (Most Likely), a downside (loss of tenants), and dark scenarios (100% vacant). For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and contact information, sign up for a free trial here.

Jefferson Mall

281,020-sf, Regional Mall, Louisville, KY

The Loan transferred to special servicing on 1/28/21 for imminent non-monetary default related to the bankruptcy proceedings of the Loan sponsor. The Loan is secured by a portion of a regional mall located in Louisville, KY. Notable CRED iQ Comps are Oxmoor Center and Mall St. Matthews, both within 10 miles of Jefferson Mall.

The Loan was modified on 8/11/20 to extend maturity two years to 6/1/26. The Borrower is seeking a subsequent modification and Argentic is completing the necessary due diligence to address the request. An updated appraisal for 2/25/21 was recently reported, implying a cap rate of 15%; although, the CRED iQ Base-Case valuation comes in even lower. For the full valuation report and loan-level details, click he r e.

Newport Centre

1,148,835-sf, Regional Mall, Jersey City, NJ

The Loan transferred to special servicing on 5/3/21 for maturity default. Prior to maturity, a forbearance agreement allowed the Borrower to defer principal payments from May through July 2020. Deferred principal payments were required to be paid back by the 5/1/21 maturity date. The Loan is secured by 972,484 sf of retail space that includes 3 anchor parcels occupied by Macy’s, Sears, and Kohl’s. JCPenney owns and operates a fourth anchor parcel totaling 180,891 sf, located on the south end of the property. The Borrower has requested for a maturity extension. For the full valuation report and loan-level details, click here.

Crowne Plaza Portland Convention Center Hotel

241 keys, Full-Service Hotel, Portland, OR

The Loan transferred to special servicing on 5/7/21 for maturity default. Loan is secured by a full-service hotel that operates as a Crowne Plaza and is heavily dependent on primary demand generators such as the Moda Center and the Oregon Convention Center. NOI for the hotel in 2020 was negative due to demand disruption from COVID-19. Rialto is reaching out to the Borrower to assess the next steps for workout. For the full valuation report and loan-level details, click here.

Champaign Portfolio

200,191-sf, Mixed-Use Office Portfolio, Champaign, IL

The Loan transferred to special servicing on 4/23/21 for imminent monetary default. The Loan is secured by a portfolio of 10 single-story buildings, that primarily function as office use with some light industrial capability. The Borrower has not yet signed a pre-negotiation agreement and loan workout has yet to be determined.

Courtyard By Marriott – Lake Norman

90 keys, Limited-Service Hotel, Huntersville, NC

The Loan transferred to special servicing on 5/4/21 for payment default. The Loan is secured by a limited-service hotel that operates as a Courtyard by Marriott catering to leisure guests with the benefit of lake access within 5 miles. COVID-19 was cited by the Borrower as the primary reason for distress and Rialto has reached out to the Borrower to assess the next steps of workout. For the full valuation report and loan-level details, click here.

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. For full access to our loan database and valuation platform, sign up for a free trial below:

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June 2021 Delinquency Report

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CRED iQ

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June 9, 2021

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The overall delinquency rate continued its decline for the eleventh consecutive reporting period following its rapid ascent from April to June 2020. As we have been reporting, despite this steady decline, defaults on CRE mortgages remain somewhat elevated across the country, driven primarily by the retail and lodging sectors. As many areas within the United States are beginning to return to a pre-pandemic level of normalcy, we expect default rates to continue to level off with more immediate and significant improvements in the hotel sector throughout the remainder of the year.

Click below to download the free Delinquency Report

The-CRED-DQ-Report-June-2021 Download

CRED iQ monitors market performance for nearly 400 MSAs across the United States. Below is a summary of the default rates for the 50 largest metros segmented by property type. For these 50 MSAs, the highest delinquency was in Minneapolis, followed by Louisville and New Orleans. The New Orleans hotel market saw the largest month-over-month increase in delinquency. Allentown, Pennsylvania reported the lowest default rate among the 50 MSAs. The most significant month over-month decline in delinquency was in the Nashville hotel market.

Select markets from the June 2021 CRED DQ Report

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 $910 billion of commercial real estate.

CRED iQ tracks loan-level performance for the entire CMBS, CRE CLO, SBLL, and Agency universes.

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CRED iQ Valuation Updates – Specially Serviced Loans

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CRED iQ

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May 26, 2021

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This week, CRED iQ calculated real-time valuations for five specially serviced loans that have not received an updated appraisal or BOV. The CRED iQ valuations factor in a base-case (Most Likely), a downside (loss of major tenant), and dark scenarios (100% vacant). For full access to the valuation reports as well as full CMBS loan reporting, including detailed financials, updated tenant information, and contact information, sign up for a free trial here.

3 Park Avenue

667,446-sf CBD Office, New York City, NY 10016

The $182.0 million senior loan transferred to the special servicer in March 2021 for delinquency and a low DSCR. 3 Park Avenue, a 667,466 SF office and retail building located on the corner of 34th Street and Park Avenue in New York, NY. Borrower is both the Landlord and the Tenant on the leasehold estate. The property was developed in 1975, compromised of 41 stories with ~640,000 SF of office space and ~26,000 SF of retail space.

As of May 2021, the loan is showing delinquent and has been delinquent at least three times in within the last 12 months. The Borrower presented the Lender with a relief request related to COVID-19 economic impact. ROR Letter was mailed certified to the Borrower. The occupancy as 09/30/2020 also decreased below 80% of UW occupancy to 61.54% from the 85.47% as of 09/30/2019. YTD09 2020 DSCR is 1.23x compared to YE 2019 DSCR of 1.77x. For the full valuation report and loan-level details, click here.

One City Centre

602,122-sf, CBD Office, Houston, TX 77002

The loan transferred to the special servicer in March 2021 for imminent monetary default. CRED iQ ran an updated valuation that valued the office tower at $58.7 million ($98/sf) given its current occupancy of 28.5%.

Tenant Rents and other revenue are in Cash Sweep. PNA was signed by Borrower and discussions took place with SS. March financials and April rent roll were provided. The Major Tenant – Waste Management did not sign a new lease and elected to vacate the building the end of 2020. Borrower is not willing to fund the operating shortfall and debt service monthly. Borrower is asking to utilize funds held in Sweep Account to pay for operating expenses and Waste Management credit owed for overpayment of 2020 operating costs. For the full valuation report and loan-level details, click here.

Arbor Place Mall

546,374-sf, Regional Mall, Douglasville, GA

The Loan transferred to special servicing on 4/22/20 for imminent monetary default. The Borrower stated that they were not going to be able to cover shortfalls at the property. The loan is secured by a regional mall located in Douglasville, GA.

The Lender is working with the Borrower on a loan modification to determine if there are reasonable terms that can be negotiated that are acceptable to the Lender. The Borrower has kept the loan payments current, and the parent company of the Borrower has filed bankruptcy along with the Guarantor for this loan. Midland is monitoring the bankruptcy to determine if there is any action needed by the lender. For the full valuation report and loan-level details, click here.

Mall St. Matthews

668,508-sf Regional Mall, Louisville, KY 40207

The property is a 673,782 sf regional mall in Louisville, KY. Borrower was unable to pay off the loan on the maturity date. The special Servicer is currently in discussion with the borrower on a potential workout and/or deed-in-lieu. For the full valuation report and loan-level details, click here.

Meadows Mall

308,620-sf Regional Mall, Las Vegas, NV 89107

The loan transferred to MLS Special Servicing 10-1-2020 due to Monetary Default. Cash trap has been sprung and all rents are being swept into the lockbox. Borrower has requested forbearance, and that Lockbox funds be released to fund operating expenses. BOV and Appraisal have been received. Discussions to arrive at a sustainable resolution are ongoing. For the full valuation report and loan-level details, click here.

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. For full access to our loan database and valuation platform, sign up for a free trial below:

FREE TRIAL

May 2021 Delinquency Report

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CRED iQ

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May 10, 2021

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The overall delinquency rate continued its decline for the tenth consecutive reporting period following its rapid ascent from April to June 2020. While the commercial real estate sector may have largely avoided a sustained period of distress resulting from the pandemic, defaults on CRE mortgages remain somewhat elevated across the United States, driven primarily by the retail and lodging sectors. With ongoing COVID 19 vaccination efforts, we expect default rates to continue to level off with more immediate and significant improvements in the hotel sector throughout the remainder of the year.

The-CRED-DQ-Report-May-2021-1 Download

CRED iQ monitors market performance for nearly 400 MSAs across the United States. Below is a summary of the default rates for the 50 largest metros segmented by property type. For these 50 MSAs, the highest delinquency was in Minneapolis, followed by Louisville and Cleveland. Louisville saw the largest month-over-month increase in delinquency. Allentown, Pennsylvania reported the lowest default rate among the 50 MSAs. The most significant month-over-month decline in delinquency was in New York City.

The CRED DQ Report – Featured Markets May 2021

By property type, the hotel and retail sectors remain the largest contributors to the delinquency percentages for the majority of these statistical areas. Loans backed by self-storage, multifamily, and industrial facilities posted the lowest delinquency rates for most of these markets.

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 $910 billion of commercial real estate..

CRED iQ tracks loan-level performance for the entire CMBS, CRE CLO, SBLL, and Agency universes.

Start Your Free Trial

CRED iQ Launches Non-CMBS Valuation Tool

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CRED iQ

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May 5, 2021

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Our team just launched a great new product where our customers can value any commercial building within the US (CMBS & Non-CMBS) leveraging our massive database of property, loan, and financial data using our proprietary valuation software and comparable property technologies.

Subscribers can easily tweak assumptions on the fly and analyze the impact to the final value. Users can run scenarios and save different versions for base-case, downside (distressed), and dark scenarios.

April 2021 Delinquency Report

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CRED iQ

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April 4, 2021

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The overall delinquency rate continued its decline for the ninth consecutive reporting period following its rapid ascent from April to June 2020. Although there has been a favorable trend, defaults on CRE mortgages remain elevated across the United States, driven primarily by the retail and lodging sectors. With ongoing COVID 19 vaccination efforts, we expect default rates to continue to level off with more immediate and significant improvements in the hotel sector throughout the remainder of the year.

CRED iQ monitors market performance for nearly 400 MSAs across the United States. Below is a summary of the default rates for the 50 largest metros segmented by property type. For these 50 MSAs, the highest delinquency was in Minneapolis, followed by Cleveland and New Orleans. New York City saw the largest month-over-month increase in delinquency. Allentown, Pennsylvania reported the lowest default rate among the 50 MSAs. The most significant month-over-month decline in delinquency was in Louisville.

For the full report, download here:

The-CRED-DQ-Report-April-2021 Download

By property type, the hotel and retail sectors remain the largest contributors to the delinquency percentages for the majority of these statistical areas. Loans backed by self-storage, multifamily, and industrial facilities posted the lowest delinquency rates for most of these markets.

March 2021 Delinquency Report

By

CRED iQ

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March 5, 2021

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Overall delinquency continued its decline for the eighth consecutive reporting period following its rapid ascent from April to June 2020. Although there has been a favorable trend, defaults on CRE mortgages remain at an elevated level across the United States, driven primarily by the retail and lodging sectors. We expect delinquency to remain elevated for 2021, however as COVID 19 vaccination efforts continue to ramp up, we anticipate more immediate and significant improvements to the hotel default rate throughout the year.

For the full delinquency report, download here:

The-CRED-DQ-Report-March-2021 Download

CRED iQ monitors market performance for nearly 400 MSAs across the United States. Below is a summary of the default rates for the 50 largest metros segmented by property type. Consistent with the months following the start of the pandemic, the hotel and retail sectors remain the largest contributors to the delinquency percentages for the majority of these statistical areas. Loans backed by self-storage, multifamily, and industrial facilities posted the lowest delinquency rates for most of these markets.

For full access to CRED iQ’s loan, property and valuation data, sign up here:

February 2021 Delinquency Report

By

CRED iQ

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February 5, 2021

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Overall delinquency continued its decline for the seventh consecutive reporting period following its rapid ascent from April to June 2020. Although there has been a favorable trend, defaults on CRE mortgages remain at an elevated level across the United States, which we expect to continue throughout 2021.

For the full February 2021 Delinquency Report, download here:

The-CRED-DQ-Report-February-2021-Edition Download

CRED iQ monitors market performance for nearly 400 MSAs across the United States. Below is a summary of the default rates for the 50 largest metros segmented by property type. Consistent with the months following the start of the pandemic, the hotel and retail sectors remain the largest contributors to the delinquency percentages for the majority of these statistical areas. Loans backed by self-storage, multifamily, and industrial facilities posted the lowest delinquency rates for most of these markets.

For full access to CRED iQ’s loan database, start a free trial today and click here.

CRED iQ’s WAR (Weekly Asset Review) Report

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CRED iQ

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January 27, 2021

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In this week’s WAR Report, CRED iQ showcases distressed opportunities in Tampa, NYC, and Houston. See the highlights of the report below, which contains loan, property, tenant, and valuation data.

Asset #1: 29,415-SF CBD Retail – Lower Manhattan, NY

CRED iQ: Loan transferred to Special Servicing on 11/12/2020 due to payment default. Loan is currently past due for its September 2020 monthly payment. Subject property is a two-level (ground & lower) retail condo, located in New York, NY at the base of The Atrium, a 190-unit multifamily building. Borrower has indicated several tenants remain delinquent due to the effects of COVID-19 on their business, namely the property’s largest tenant Le Poisson Rouge (13,623 SF, 46% NRA, exp 9/30/2027). Servicer advances total $606,177 as of December 2020. Access full loan, financial, borrower contact, and lender details here: cred-iq.com.

Asset #2: 120,543-SF Suburban Office – Tampa MSA

CRED iQ: The borrower delivered written notice of inability to pay the loan payments and offered up a deed-in-lieu. The previous modification provided for the Borrower to consent to the receiver. HSBC left the property in June 2018. Property has an environmental issue tied to a leak in the elevator shaft. The Receivership order was filed and signed a day later by the judge. The Receiver is in place and managing the property. JLL was chosen to handle the leasing. Evaluating lease up and sell vs sale as is. Have received some interest regarding lease up and note buyers.. Access full loan, financial, borrower contact, and lender details, by clicking here: cred-iq.com.

Asset #3: 179,469-SF Anchored Retail – Houston MSA

CRED iQ: The loan is secured by a 179,469 SF anchored retail property. The property is anchored by Best Buy, Marshalls and Big Lots. The property is also anchored by Target, which is not part of the collateral. The property was built in 1994 and renovated in 2011.

Occupancy has declined from 80.11% at Year-end 2019 to 58.20% as of Sept. 2020 due to Best Buy occupying 31,522 SF (34.28% GLA) vacating upon lease end in March 2020. The loan transferred to the special servicer in November 2020 for imminent monetary default.

Access full loan, financial, borrower contact, and lender details here : cred-iq.com.

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform designed to help industry professionals unlock investment, leasing, and lending opportunities. For a free trial and access to our loan-level database, register here.

January 2021 Delinquency Report

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CRED iQ

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January 5, 2021

0

Overall delinquency continued its decline for the sixth consecutive reporting period following its rapid ascent from April to June 2020. Although there has been a favorable trend, defaults on CRE mortgages remain at an elevated level across the United States. Despite Congress passing a $900 billion COVID relief bill, and initial COVID vaccination efforts, the benefits of these measures won’t immediately be evident for the majority of distressed commercial properties. As a result, we expect delinquencies will remain elevated for much of 2021.

CRED iQ monitors market performance for nearly 400 MSAs across the United States. Below is a summary of the default rates for the 50 largest metros segmented by property type. Consistent with the months following the start of the pandemic, the hotel and retail sectors remain the largest contributors to the delinquency percentages for the majority of these statistical areas. Loans backed by self-storage, multifamily, and industrial facilities posted the lowest delinquency rates for most of these markets.

Among the markets with the largest spikes in delinquency for this reporting period is Cincinnati. Contributing to the overall default rate for this metro is the 212-key, Cincinnati Eastgate Holiday Inn. The full-service hotel was built in 1983 and renovated in 2010. According to the servicer, the loan defaulted in June 2020 and is heading for foreclosure. For more information on this property, please visit cred-iq.com.

For the full January 2021 Delinquency Report, download here:

The-CRED-DQ-Report-January-2021-Edition Download

CRED iQ will continue to track developments by market across the nearly 400 MSAs under coverage. Please visit cred-iq.com for periodic updates and to identify lending, leasing, distressed debt or acquisition opportunities within these markets.

To create a free account to CRED iQ, please click h ere.