CMBS Special Servicing Rate Dips in February, but Retail Sees Big Increase

The Trepp CMBS Special Servicing Rate declined modestly by 18 basis points in February to 10.73%. The decline resulted from seven office and three mixed-use loans transferring out of special servicing, but was nearly negated by a large retail loan’s transfer to special servicing. 

February saw large and mixed movements across property types. The mixed‑use rate decreased 118 bps to 12.49%, and office declined 82 bps to 16.29%, while industrial remained unchanged at 0.85%.

Meanwhile, the retail rate increased 133 bps to 13.09, led by one loan that represented 120 basis points of that rise: the $1.25-billion Saks Fifth Avenue Building loan. It transferred to special servicing for imminent monetary default following bankruptcy filings by the loan guarantors and related entities, including the ground lessee, which created multiple events of default and an associated cash sweep period.

The lodging rate rose 64 bps to 10.01%, and multifamily edged up 16 bp to 8.30%. 

The post CMBS Special Servicing Rate Dips in February, but Retail Sees Big Increase appeared first on Connect CRE.

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