{"id":1927,"date":"2022-03-02T22:33:23","date_gmt":"2022-03-02T22:33:23","guid":{"rendered":"https:\/\/cred-iq.com\/blog\/?p=1927"},"modified":"2022-03-02T22:33:23","modified_gmt":"2022-03-02T22:33:23","slug":"market-delinquency-tracker-march-2022","status":"publish","type":"post","link":"https:\/\/cred-iq.com\/blog\/2022\/03\/02\/market-delinquency-tracker-march-2022\/","title":{"rendered":"Market Delinquency Tracker – March 2022"},"content":{"rendered":"\n
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CRED iQ monitors distressed rates (DQ + SS%) and market performance for nearly 400 MSAs across the United States, covering over $900 billion in outstanding CRE debt. Distressed rates and month-over-month changes are presented below, by property type, for the 50 largest markets.<\/p>\n\n\n\n

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Distressed figures include all properties listed 30 days delinquent or worse, as well as specially serviced loans within the securitized universe including Conduit, Agency, SBLL, and CRE CLO.<\/em><\/figcaption><\/figure><\/div>\n\n\n\n

Pockets of distress have materialized across various markets in the office sector over the past month. Birmingham, AL<\/strong>, New Orleans<\/strong>, and Baltimore<\/strong> exhibited the highest increases in office distress, accounting for 3 of the Top 10 increases in distress by market-sector in February 2022. The Birmingham market was impacted by two office properties \u2014 Wells Fargo Tower<\/a> and Inverness Center<\/a> \u2014 transferring to special servicing. The two properties, along with an office building in Columbia, SC, secure a $129.2 million mortgage that is at risk of imminent monetary default, according to the latest servicer commentary.<\/p>\n\n\n\n

In addition to office, the retail sector exhibited some volatility, accounting for 3 of the Top 10 increases in distress and three of the Top 10 decreases in distress. The Nashville<\/strong> retail market benefitted from a decline in distress following the cure of CoolSprings Galleria<\/a> \u2014 a 640,176-sf regional mall that secures a $145.6 million mortgage. The loan had transferred to special servicing due to bankruptcy of its sponsor, CBL Properties. CBL Properties was able to complete a restructuring, which then enabled the loan to return to the master servicer. CoolSprings Galleria is one of CBL Properties\u2019 higher quality regional malls.<\/p>\n\n\n\n

Another sector with notable improvements in February was the Chicago<\/strong> hotel market. The improvement was primary driven by the delinquency cure of the $95.9 million Marriott Chicago River North Hotel<\/a> and its subsequent return to the master servicer. The loan had been in special servicing since July 2020 due to pandemic-related issues. Despite the improvement, the rate of distress for Chicago hotels is still one of the highest among the Top 50 MSAs, equal to 43.9% this month.<\/p>\n\n\n\n

The distressed rate for the Louisville<\/strong> market improved this month after the $73.6 million Oxmoor Center<\/a> loan returned to the master servicer as a corrected mortgage. The loan was modified and its maturity date was extended from June 2021 to June 2024. Oxmoor Center is a 941,756-sf regional mall, owned by Brookfield Properties, and features an Apple store as one of its primary drivers of traffic. Anchor boxes include Macy\u2019s, Von Maur, Dick\u2019s Sporting Goods and a vacant former Sears. As a result of this loan\u2019s return to the master servicer, the Louisville market had the greatest month-over-month decline among all rates of distress; however, Louisville still has the second-highest overall distressed rate among the Top 50 MSAs.<\/p>\n\n\n\n

The Minneapolis<\/strong> MSA has the highest overall distressed rate at 22.9%, which was slightly lower than the prior month. Louisville<\/strong> (17.9%), New Orleans<\/strong> (13.9%), Cleveland<\/strong> (11.8%), and Milwaukee<\/strong> (10.1%) comprise the remaining markets with the highest rates of distress. The Raleigh<\/strong> market (0.28%) had the lowest percentage of distress among the Top 50 MSAs for the second month in a row. Additionally, Boston<\/strong> (0.91%) exhibited recoveries in delinquency and special servicing to rank as one of the five markets with the lowest amount distress.<\/p>\n\n\n\n

For the full CRED DQ Report, download here:<\/p>\n\n\n\n