NEW YORK CITY—Due largely to portfolio runoff that exceeded new issuance in the previous month, CMBS delinquencies ticked upward again in September, Fitch Ratings said Monday. Late-pays on Fitch-rated securitized commercial mortgages rose three basis points to 3.18%.
The month's resolutions of $541 million edged out new delinquencies of $511 million. However, the ratings agency says delinquencies rose overall due to a $9 billion portfolio runoff that significantly exceeded Fitch-rated new issuance volume of $5 billion from six transactions in August.
The largest resolution was the $51.9-million Merritt Square Mall asset (MSCI 2006-IQ11), a 478,040-square-foot regional mall in Merritt Island, FL, which became REO this past June. The loan was liquidated with a loss severity of 27% on the original loan balance of $57 million. Largest of the new delinquencies, which was mainly responsible for a 13-bp increase in the office delinquency rate, was the $68.75-million Dulles Executive Plaza loan (BSCMS 2006-TOP24), secured by a 379,596-square-foot office property in Herndon, VA. The loan defaulted at its maturity date last month.
Office saw the largest late-pay increase during September; however, the sector's 4.68% delinquency rate was only the second highest for the month. Retail edged it out with a 4.77% late-pay rate, although that represented a two-bp decline from the month before.
Industrial late-pays came in third, with a 12-bp increase to 4.17%. However, Fitch says that was based on a low volume level of just $34 million in newly delinquent loans. Next were hotels with a 3.88% delinquency rate for September, up three bps from the previous month. Multifamily was unchanged at 0.79%, while delinquencies on loans backed by mixed-use properties declined seven bps to 3.94%.
Fitch notes that CMBS 1.0 delinquencies have risen since year began and were up for the eighth consecutive month in September, while CMBS 2.0 delinquencies have held steady since July. Delinquencies on pre-2009 loans rose 72 bps to 11.69% during September; their 2.0 counterparts held the line with a late-pay rate of 0.15%.
The month's resolutions of $541 million edged out new delinquencies of $511 million. However, the ratings agency says delinquencies rose overall due to a $9 billion portfolio runoff that significantly exceeded Fitch-rated new issuance volume of $5 billion from six transactions in August.
The largest resolution was the $51.9-million Merritt Square Mall asset (MSCI 2006-IQ11), a 478,040-square-foot regional mall in Merritt Island, FL, which became REO this past June. The loan was liquidated with a loss severity of 27% on the original loan balance of $57 million. Largest of the new delinquencies, which was mainly responsible for a 13-bp increase in the office delinquency rate, was the $68.75-million Dulles Executive Plaza loan (BSCMS 2006-TOP24), secured by a 379,596-square-foot office property in Herndon, VA. The loan defaulted at its maturity date last month.
Office saw the largest late-pay increase during September; however, the sector's 4.68% delinquency rate was only the second highest for the month. Retail edged it out with a 4.77% late-pay rate, although that represented a two-bp decline from the month before.
Industrial late-pays came in third, with a 12-bp increase to 4.17%. However, Fitch says that was based on a low volume level of just $34 million in newly delinquent loans. Next were hotels with a 3.88% delinquency rate for September, up three bps from the previous month. Multifamily was unchanged at 0.79%, while delinquencies on loans backed by mixed-use properties declined seven bps to 3.94%.
Fitch notes that CMBS 1.0 delinquencies have risen since year began and were up for the eighth consecutive month in September, while CMBS 2.0 delinquencies have held steady since July. Delinquencies on pre-2009 loans rose 72 bps to 11.69% during September; their 2.0 counterparts held the line with a late-pay rate of 0.15%.
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