Liquidations of securitized commercial real estate loans totaled $1.1 billion in August, down by nearly 50% from the prior month, according to a Trepp LLC report.
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“After a near-record amount of loan liquidations in July, August saw volume cut in half, falling back in line with the roughly three-and-a-half-year average,” the Sept. 5
In July, CMBS loan liquidations totaled $2.05 billion, compared to the 12-month moving average of $1.32 billion.
The August loss severity rate on the 90 CRE loans liquidated was 40.9%., compared to 43.6% in July.
Since January 2010, servicers have been liquidating at an average rate of $1.18 billion per month,” Trepp said.
