NEW YORK--(BUSINESS WIRE)--U.S. CMBS delinquencies fell last month for the first time since March even though late-pays on older vintages continue to rise, according to the latest index results from Fitch Ratings.
Loan delinquencies declined by five basis points (bps) in August to 3.15% from 3.20% a month earlier. The portfolio runoff of $8.1 billion doubled Fitch-rated new issuance volume of $4 billion from six transactions in July, causing a decrease in the overall index denominator. Contributing to the majority of the 45-bp decline in the hotel delinquency rate, the largest resolution was the JQH Hotel Portfolio loan, which consists of a $127.9 million A-note (JPMCC 2006-LDP7) and an $8.4 million B-note (CD 2007-CD4).
While the overall delinquency rate has declined, CMBS 1.0 delinquencies have risen since the start of 2016 and were up for the seventh consecutive month, now nearing 11%. Over 50% of the outstanding CMBS 1.0 delinquencies are REO assets, with an average aging of approximately 23 months. The largest new delinquency was the $113.7 million SBC-Hoffman Estates loan ($55.7 million in a Fitch-rated transaction (BSCMS 2006-PWR11) and $58 million in a non-Fitch-rated transaction (MSCI 2006-TOP21)).
Current and previous delinquency rates by property type are as follows:
--Retail: 4.79% (from 4.73% in July);
--Office: 4.55% (from 4.56%);
--Hotel: 3.85% (from 4.30%);
--Multifamily: 0.79% (from 0.86%);
--Industrial: 4.05% (from 3.98%);
--Mixed Use: 4.01% (from 4.03%);
--Other: 0.72% (from 0.76%).
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