NEW YORK--(BUSINESS WIRE)--U.S. CMBS delinquencies rose in May for the second straight month, according to Fitch Ratings in its latest weekly U.S. CMBS newsletter.
Loan delinquencies increased six basis points (bps) in May to 2.98% from 2.92% a month earlier. The dollar balance of late-pays increased $173 million to $11.22 billion from $11.05 billion in April. The increase was largely driven by the addition of three loans over $50 million into the index, a large mixed-use loan and two large retail portfolio loans.
The largest new delinquency, which contributed to an 83-bps spike in the mixed-use delinquency rate, was the $150 million City Place loan (CSMC 2007-C1). The loan, secured by a 731,886 square foot (sf) mixed-use property containing retail, office and multifamily components located in West Palm Beach, FL, was first transferred to the special servicer in April 2010 and was modified into A/B notes in December 2011. The largest resolution was the Coventry Mall asset (MSC 2005-TOP17). The asset, which became REO in October 2013, was a 796,194 sf regional mall located in Pottstown, PA. The loan was transferred to special servicing two times, first in February 2011 and then again in December 2012.
Current and previous delinquency rates by property type are as follows:
--Retail: 4.56% (from 4.42% in April);
--Office: 4.15% (from 4.16%);
--Hotel: 3.47% (from 3.59%);
--Multifamily: 0.87% (from 0.90%);
--Industrial: 3.41% (from 3.34%);
--Mixed Use: 4.08% (from 3.25%);
--Other: 0.79% (from 0.72%).
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Additional information is available at www.fitchratings.com.