SAN DIEGO—The Four Seasons Aviara Resort inCarlsbad is once again serving as anchor for the San Diegomarket's delinquent balance, allowing for a healthy issuance inNovember, Trepp LLC researchanalyst Sean Barrie tells GlobeSt.com. According to Barrie,responding to questions on a recent report from the firm, San Diegois one of only 17 MSAs to have a delinquency rate below or equal to5.25% and still generate at least $22 million in issuance inNovember. "Not much of a shift in the delinquency rate, though theissuance is a good sign since the market's total loan balancedipped month-over-month." We spoke exclusively with Barrie aboutthe delinquency rate in San Diego and how he sees it playing out in2016.

GlobeSt.com: How was San Diego able to have adelinquency rate below or equal to 5.25% and still generate atleast $22 million in issuance in November?

Barrie: Since the Four Seasons AviaraResort in Carlsbad is delinquent, that property's loan balance($186.5 million) is serving as anchor for the San Diego market'sdelinquent balance. If that loan was to have its delinquent statusremoved, the delinquency rate would drop to a much healthier level.Lending banks probably recognize this fact and decide to invest inSan Diego because there's just one 'bad egg' in the market'scurrent crop of large loans.