A term default on a B-note and mezzanine debt backed by a 410,000-square-foot Atlanta office building was the largest new delinquency in this category during January. It suffered from a significant decline in property cash-flow after the largest tenant, representing 37% of its net rentable area, vacated the property at the end of October 2012.
Other newly delinquent assets during the month included another term default, a matured balloon loan and one credit impaired security, according to Fitch.
Asset managers recorded about $50 million in realized principal losses from the disposal of several assets during the month, which the largest reported loss being a 33% realized loss on the discounted sale of a 350,000-square-foot real estate owned officer property in San Diego. Fitch had anticipated the loss in its last rating action for the transaction.
