The delinquency rate on commercial mortgage-backed securities dropped sharply in January, thanks to the resolution of New York's Stuyvesant Town loan, according to Trepp.
The rate of U.S. commercial real estate loans embedded in CMBS that were delinquent fell 82 basis points in January to 4.35%, compared to December, Trepp said. The delinquency rate is 131 basis points lower than the rate of 5.66% a year earlier.
The improvement was primarily attributable to the resolution of the $3 billion loan on the Stuyvesant Town/Peter Cooper housing development in Manhattan. An additional $300 million of loans were also cured in January.
About $1.7 billion of CMBS loans became newly delinquent in January. The largest newly delinquent loan in the quarter was a $126 million loan attached to the Two Gateway office complex in Newark, N.J. Also going delinquent in the quarter was a $62 million loan for the Stamford Marriott hotel in Stamford, Conn., and a $62 million loan on the Chesapeake Square retail complex in Chesapeake, Va.
Total delinquencies stood at $23.5 billion.
The industrial CMBS delinquency rate rose 23 basis points to 5.96%, while the lodging delinquency rate was unchanged at 2.82%.
The multifamily delinquency rate plunged 597 basis points to 2.31%. Apartment loans are now the best performing major property type.
The office property delinquency rate fell 55 basis points to 5.24% and the retail delinquency rate fell 14 basis points to 5.62%.
