CMBS delinquencies dipped below 6 percent for the first time since before the recession, according to new data released Monday by credit ratings agency Fitch. Non-payments dropped for the fifteenth straight month, the new numbers show.
Nonperforming CMBS were down 10 basis points to 4.87 percent of all outstanding loans tracked by Fitch, from 4.97 percent in May.
And in New York City, 30-day delinquencies continued a downward trend in June, declining to 6.27 percent in May from 9.07 percent at this time last year, according to a report released today by Massey Knakal Realty Services, the New York-based brokerage. Meanwhile, 60-day delinquencies in New York are at 3.36 percent this July, down from 4.67 percent a year ago, according to the report.
The steady decline in non-payments could be attributed to the combination of the increasing issuance of new CMBS as well as the resolution of older nonperforming CMBS in the context of slow but steady economic growth, Mary MacNeill, a managing director at Fitch, told Mortgage Observer.
The largest delinquent CMBS trust resolved in June was tied to the Senior Living Properties Portfolio, a collection of 87 properties in Texas and Illinois whose insolvency was tied to changes in Medicare and Medicaid reimbursements. The loan was sold for $112 million in June.
The largest loan to run in trouble last month was the $55 million RiverCenter I & II loan, which defaulted at its maturity in early June. The note is backed by two office towers in Covington, Kentucky.