Most transfers to special servicing year-to-date in 2013 “have primarily been” in the $10 million and below range, according to Fitch Ratings.
Smaller-balance loans continue to transfer into special servicing indicating their
The trend was more pronounced in the multifamily property lending marketplace which “saw the biggest swing from 2012 to 2013.”
A higher number of small-size multifamily loans transferred to special servicing in 2013. It increased from 83 loans in 2012 to 104 loans year-to-date in November.
Hence, by balance the 2013 transfers totaled only $576 million compared to $1.4 billion for the same time last year.
In 2013 the number of
These higher-risk small-size loans transferred to special servicing this year, however, appear to be smaller in size leading to a considerably lower dollar volume from $15.8 billion in November 2012 to $7.5 billion so far in 2013.
From that total up to 467 loans were under the $10 million range representing $1.8 billion.
Larger-balance loans are performing much better as only 16 loans with balances over $75 million, which equals $2.2 billion, were high default risk, compared to 39 transfers of loans exceeding $75 million at a $8 billion total, that Fitch reported by this time last year.
By property type office and retail loans were the other
Year-to-date in November the number of office loans in special servicing reached to 194 at $2.9 billion up from 191 loans at $5.8 billion by November 2012.
Similarly, 189 retail CMBS loans at $2.1 billion transferred in 2013 compared to 148 loans at $2.7 billion in 2012.