Defaults on commercial mortgage-backed securities declined from the end of the third quarter, compared to the previous quarter, according to Fitch Ratings.
The CMBS loan default rate fell to 13.2%, as of Sept. 30, from 13.3% at the end of the second quarter, Fitch said. In the third quarter, a total of 38 loans with an unpaid principal balance of $779.1 million went into default. That's down from 70 loans entering into default in the second quarter, totaling $797.4 million.
The average size of the defaulted loans in the third quarter was $20.5 million.
Office properties were the largest contributor to new defaults, with 15 loans going becoming delinquent. Retail properties were the second-largest contributor, followed by industrial, hotel and multifamily properties.
The five largest defaulted loans in the third quarter were: a $163.8 million loan on One and Two Jericho Plaza in Jericho, N.Y.; a $108.5 million loan on The Mall at Stonecrest in Lithonia, Ga.; a $89.8 million loan on Vista Ridge Mall in Lewisville, Texas; a $52.5 million loan on Fifth Third Center in Columbus, Ohio; and a $48.8 million loan on the Maxtor Campus in Longmont, Colo.
