US CMBS 2.0 loans entering special servicing have increased year-over-year and now comprise a larger proportion of overall loans in special servicing, according to Fitch Ratings.
The number of 2.0 loans transferring to the special servicer increased to 60 loans ($693 million) in Q1, compared to 28 loans ($242 million) during the same period last year.
“The CMBS 2.0 transfers have generally been due to various factors, including the idiosyncratic risks centered on sponsor or tenant issues with the most recent being the impact of lower oil prices in North Dakota,” according to a statement from the ratings agency.
The amount of US CMBS 1.0 loans in special servicing decreased as these more seasoned loans are disposed, falling to $14.4 billion from $22.3 billion.
“Two common denominators in these diverging trends are office and retail properties, which are both tops for specially serviced loans for both CMBS 1.0 and 2.0 as well as performing specially serviced loans,” Fitch wrote.
For CMBS 2.0, office and retail comprise 46% and 33%, respectively, of the total performing specially serviced 2.0 balance.
Fewer total loans were in the hands of special servicers at the end of first quarter compared with last year; approximately $15.1 billion (977 loans, or 4 percent of the US CMBS Fitch-rated universe) was specially serviced at end of Q1 compared to $22.5 billion (1,219 loans; or 6 percent) at the end of Q1 in 2015.
CMBS 2.0 loans typically refers to those loans made after the financial crisis.