Late-Pays in CMBS Dip Below 5%

NEW YORK CITY—Thanks to resolutions from a single 2007-vintage deal, JPMCC 2007-LDP10, US CMBS delinquencies in May fell to a level not seen since December 2009, Fitch Ratings said Monday.  The rate of Fitch-rated late pays inched down 16 basis points from the previous month to 4.97%, the first time it has dipped below 5% in more than four years.

The largest resolutions in May by loan balance included two from JPMCC 2007-LDP10: the $103.5-million Long Island Marriott and Conference Center, which was resolved with a 40% loss; and the $55-million Overland Park Trade Center, resolved with a 67% loss. Other large resolutions included the $89.4-million Gateway I, from MSCI 2007-IQ13; and the $73.6- million Islandia Shopping Center, from LBUBS 2007-C6, both of which were brought current.