The $3 billion in securitized loans tied to Blackstone’s purchase of Stuyvesant Town-Peter Cooper Village have paid off, signaling a huge drop in the CMBS delinquency rate.
Trepp previously noted that a 60 basis point drop in the monthly delinquency rate would result from the loan’s resolution. The pay off could make multifamily CMBS the best performing asset class after a long streak as the worst, its delinquency rate increasing 13 basis points to 8.28 percent as of December.
MLCFC 2007-6, one of the first deals to post remittance data, has repaid $202.2 million to investors in the A-1A class, representing 69 percent of that class’s remaining balance and 11.3 percent of the entire deal. All five of the deals with StuyTown exposure should roll over within the next few days, according to a statement Trepp released today.
Regarding the mezzanine classes, the firm said:
“There were sizable repayments of prior interest shortfalls. For example, the C class in that deal received interest exceeding 20% of the class’s face amount.
“Many of the mezzanine classes should see a sizable re-pricing of their values. As much of the accrued interest shortfalls put a floor price under many of these classes, the flushing through of that money will require everyone to reset their expectations.”
Blackstone and partner Ivanhoe Cambridge agreed last year to pay $5.3 billion for Manhattan’s largest apartment complex, consisting of 11,232 units.