Particle.news
Download on the App Store

CMBS Strain Deepens as Trustees Shift Tactics on Distressed Assets While Deals Keep Closing

January CMBS delinquency volume increased 3.47% on a rush of late payments.

Overview

  • CMBS trusts declined to sell DallasHarwood Center at a planned foreclosure auction, opting to hold the asset instead.
  • Trusts took title to 750 Lexington Avenue in Midtown Manhattan through a foreclosure, reflecting continued office distress management.
  • Delinquency growth was fueled by late-paying loans, including large San Francisco hotel debt tied to the Hilton Union Square and Parc 55 that was reworked and extended.
  • Lenders continued deploying capital, with Wells Fargo providing $190 million for the Ink Block and 7INK apartments in Boston and Goldman Sachs Private Bank issuing $360 million for a Four Seasons hotel-and-condo project in Jacksonville.
  • Burlington Stores expanded by 35,629 square feet to roughly 206,392 square feet at 1400 Broadway in Manhattan, according to Colliers.