NEW YORK CITY-The estimate is $1.5 billion. That's how much CMBS is expected to hit the market next week, all at the hands of Goldman Sachs, Citigroup and Jeffries Group, Bloomberg is reporting. The package is backed by 175 properties around the country and a total of 79 loans.
The CMBS market has clearly been in a state of upheaval in past months, re-awakening rather extremist talk of the death of the vehicle. As GlobeSt.com reported last week, special servicers have been able to handle more CMBS loan resolutions each year since 2009, and Fitch Ratings expects that trend to continue throughout 2012. At the same time, loss severities appear to be on the wane after hitting a high water mark of 45%, the ratings agency said in its annual US CMBS Loss Study issued earlier this week.
Throughout 2011, loss severities actually declined in most major property types, aside from hotels, where severities rose to 55.4%, coming in second behind retail with 56.4%. Looking ahead, Fitch has a wary eye on office, currently the only CMBS asset type that it’s assigned a negative outlook. "Office loans and properties along with tertiary markets are Fitch’s chief concerns with respect to loss severities in 2012,” says senior director Adam Fox.
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
