CMBS multifamily delinquency rate plunges 600bps after ‘Stuy Town’ pay off

The US CMBS multifamily delinquency rate is now the best performer among the major asset classes thanks to the pay off of the $3 billion Stuyvesant Town-Peter Cooper Village loan.

The US CMBS multifamily delinquency rate is now the best performer among the major asset classes thanks to the pay off of the $3 billion Stuyvesant Town-Peter Cooper Village loan. 

Formerly the worst performer (by far), the rate plunged 597 basis points from 8.28 to 2.31 percent in January after the resolution of the securitized loans tied to Blackstone and Ivanhoe Cambridge’s $5.3 billion purchase of sprawling 11,232-unit apartment complex, Manhattan’s largest.

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Stuy Town

Prior to the pay off, Blackstone signed an agreement with Fannie Mae for a new $2.7 billion loan in December, as first reported in Real Estate Capital. 

An additional $300 million of loans were cured in January bringing the overall delinquency rate — for multifamily, office, retail, lodging and industrial — down a total of 82 bps to 4.35 percent, which is 131 bps lower than the 5.66 percent rate from one year ago.

About $1.7 billion of CMBS loans became newly delinquent, the largest being a $126 million loan tied to the Two Gateway office complex in Newark, New Jersey. Total delinquencies stood at $23.5 billion. 

The industrial rate rose 23 bps to 5.96 percent; lodging (the former top performer) was unchanged at 2.82 percent; the office rate fell 55 bps to 5.24 percent; and the retail rate fell 14 basis points to 5.62%. 

The overall monthly drop even surpassed Trepp’s expectations, which had previously predicted a 60 basis point drop in the rate.

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