Latest news with #Trepp
Bloomberg
29-07-2025
- Business
- Bloomberg
CMBS-Linked Loans Worth $23 Billion Are Gripped by Paralysis
More commercial real estate debt is entering a state of suspended animation as the ripple effects from the pandemic continue to reverberate through the industry. About $23 billion of delinquent commercial mortgage loans bundled into bonds have reached or are approaching their maturity dates, according to an analysis by data analytics firm Trepp, with borrowers increasingly unable or simply unwilling to repay the debt. That compares with virtually zero before Covid upended the market.
Yahoo
23-07-2025
- Business
- Yahoo
CMBS multifamily servicing, delinquency rates fall in June
This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter. Dive Brief: Despite special servicing rates across commercial real estate rising to levels not seen since 2013, those percentages fell 25 basis points to 8.18% for multifamily in June. A year ago, the rate for commercial mortgage-backed securities was 5.17%, according to a report from Trepp. Multifamily CMBS loan delinquencies for apartments fell 20 bps to 5.91% in June. A year ago, they were at 2.36% Across CRE, issues in the office sector drove monthly CMBS servicing rates 27 bps to 10.57% in June, according to Trepp, its highest level since May 2013 when the rate was 10.67%. The rate has risen nearly 225 basis points in the last year. The delinquency rate rose five basis points to 7.13% and has increased by 178 basis points over the past 12 months. Dive Insight: Although multifamily has its share of issues, other sectors saw bigger problems with CMBS loans in June. The office special servicing rate climbed 62 basis points to a record high of 16.38%. The retail rate rose 41 basis points to 11.94%, its highest level since January 2022. The lodging rate increased 54 basis points to 10.11% in June. On the delinquency side, the office rate climbed 49 bps to 11.08%, surpassing previous peaks in December 2024 and July 2012. The lodging rate rose 42 bps to 6.81% in June, while retail and industrial saw small increases. Increased delinquencies in other sectors may not directly impact apartment investors, but they could provide creative firms with an opportunity to add inventory. Office-to-multifamily conversion projects have gained popularity over the past several years, increasing from 12,100 units in progress in 2021 to 71,000 units by the beginning of 2025. Even with that progress, some observers believe that current economic conditions may encourage more office conversions. '[Office conversions have] been a challenge in certain markets and it's been a challenge with certain buildings, but I'm curious to see how tariffs, immigration and labor impact conversions,' said Sharon Karaffa, president of multifamily debt and structured finance for Newmark's Multifamily Capital Markets Division. However, lodging properties can also provide an appealing conversion opportunity, according to Ryan Sudeck, CEO of Sage Investment Group. Kirkland, Washington-based Sage acquires underutilized, off-market hotels and motels, transforming them into workforce studio apartments. The company now has 27 properties in six states. 'Most of our units, on average across the portfolio, we're creating for about $100,000 all in,' Sudeck said. 'It's just a different approach. I'd like to see that become more of a trend. We're trying to push that forward as an alternative way to solve the problem that everyone acknowledges exists, which is that housing is too expensive.' Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday.
Yahoo
16-07-2025
- Business
- Yahoo
Refinancing risk will bring apartment acquisition opportunities
This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter. Dive Brief: A $120 billion maturity wave is going to hit commercial real estate loans maturing before the end of 2026 with an in-place debt service coverage ratio below 1.20x, according to a new report from Trepp. The data firm said that multifamily loans are the 'largest slice of upcoming maturity volume' and 'a key hunting ground for acquisition opportunities' for apartment investors. 'For opportunistic buyers, that means the potential for discounted entry points, even in otherwise strong markets,' Trepp said. A significant portion of apartment loans maturing over the next 18 months are tethered to legacy sub-6% coupons and have DSCRs under 1.20x, making them unlikely to refinance at par without an equity infusion or a meaningful rebound in net operating income. Dive Insight: The South Atlantic region has $9.4 billion in maturing securitized multifamily debt — the most in the nation. Nearly 70% of those loans carry a current debt yield under 7%. 'Value-add investors willing to recapitalize and reposition older Sun Belt multifamily may find an opportunity to acquire below replacement cost,' Trepp said. In the West South Central region, there is $6.7 billion in maturing securitized multifamily loans. Around $1.2 billion has in-place coupons below 6%, while over $250 million is tethered to debt yields above 13%. 'Core, core-plus and value-add investors with regional expertise can selectively target acquisitions, whether by buying distressed paper or direct acquisitions where in-place net operating income stability supports permanent financing for better-capitalized sponsors,' Trepp said. The Pacific region has $4.6 billion in securitized multifamily maturities, with $1.4 billion priced under 6% and nearly 90% at sub-10% debt yields. Mid-Atlantic apartment debt comes in at $2.5 billion, with around 14% at double-digit debt yields. 'While high-quality locations and resilient tenancy limit distress volume, few assets can refinance cleanly without some basis reset, creating opportunities for bridge lenders, structured equity and core-plus or value-add investors,' Trepp said. The Mountain region has $2.5 billion in maturities, while the East South Central contains $1.05 billion. Only $109 million in the Mountain region carries debt yields above 15%, which Trepp said reflects 'healthy levels of leverage and/or high in-place cash flow.' While investors may still covet multifamily, not all properties are in a position to refinance. 'For those seeking to deploy capital into discounted assets or provide rescue capital to strained sponsors, the next 12 to 18 months may be a window of opportunity,' Trepp said. Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-06-2025
- Business
- Yahoo
Trepp: Multifamily CMBS delinquencies, servicing rates fall
This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter. Multifamily commercial mortgage-backed securities loan delinquencies for apartments fell 46 basis points to 6.57% in May, according to a report from Trepp. A year ago, it was 1.70%. The multifamily CMBS special servicing rate fell 17 bps to 8.42% in May, according to Trepp. A year ago, it was 5.43%. The picture wasn't as good for commercial real estate as a whole in May, as issues in the office sector drove the monthly rates up. Commercial real estate delinquencies ticked up 5 bps to 7.08% in May, while the special servicing rate increased 13 bps to 10.30% in May, according to Trepp. CRED iQ's distress rate also showed an uptick in CRE problem loans, which rose from 10.3% in April to 11.0% in May. Rates had fallen for the previous three months. The delinquency rate rose by 40 basis points to 8.4%, while CRED iQ's special service number increased by 30 bps to 10.2%. The Mortgage Bankers Association's first-quarter Commercial Delinquency Report, which examined rates for commercial banks and thrifts, CMBS, life insurance companies, Fannie Mae and Freddie Mac, also found that delinquencies increased in the first quarter. 'Commercial mortgage delinquencies rose across all major capital sources in the first quarter of 2025, reflecting growing pressure on certain property sectors and loan types,' said Reggie Booker, MBA's associate vice president of commercial real estate research, in a news release published earlier this month. Investor Days delinquent % increase from Q4 2024 Banks and thrifts 90 days or in accrual 1.28% Life company portfolios 60 0.47% Fannie Mae 60 0.63% Freddie Mac 60 0.46% CMBS 30 or in REO 6.42% SOURCE: MBA However, MBA's numbers show that one investor group faced the most stress. 'While delinquency rates remain relatively low for most investor groups, the uptick in CMBS delinquencies signals heightened stress in parts of the market that lack refinancing options or other challenges,' Booker said. Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
Trepp & CRE Direct Releases "The Mid-Year Magazine 2025" as Multifamily Fundamentals Hold Firm Amid Rising Distress
Trepp and Commercial Real Estate Direct have released The Mid-Year 2025, highlighting strong fundamentals in the multifamily sector despite signs of growing distress across other commercial real estate sectors. NEW YORK, June 10, 2025 /PRNewswire-PRWeb/ -- Trepp, the leading provider of data, insights, and technology solutions to the structured finance, commercial real estate (CRE), and banking markets and Commercial Real Estate Direct, a publication delivering in-depth reporting for CRE professionals, release The Mid-Year 2025, highlighting strong fundamentals in the multifamily sector despite signs of growing stress. Access The Mid-Year 2025 Magazine here: The industry started the year brimming with optimism over their expectations that the country would be entering an era of deregulation, but that changed quickly with the uncertainty surrounding the impact of tariffs. By early April, bond yields widened and deal flow, particularly in the CMBS market, came to a virtual halt. The multifamily sector has faced mounting pressure, with $4.38 billion, or 7.07% of all CMBS multifamily loans, now more than 30 days delinquent. This is a nearly 60% increase since the end of 2024. Yet, still, the office sector remains the most challenged, with $16.28 billion in delinquent loans. On a slightly more encouraging note, that figure is lower than year-end levels, indicating that special servicers are actively resolving legacy issues. "Multifamily risk is concentrated in a small number of very large properties," said Orest Mandzy, Managing Editor of CRE Direct. "What's more, the sector is on relatively firm footing, fundamentally, unless, that is, you have to contend with onerous rent rules." The Mid-Year further explores key insights for CRE professionals navigating 2025. Access the magazine here: For more information about The Mid-Year or any of the data and analyses, email press@ or visit Follow @TreppWire and @crenewstweets on X (formerly Twitter) for the latest updates on CRE and CMBS markets. About Trepp: Trepp, founded in 1979, is the leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiencies, information transparency, and investment performance. From its offices in New York, Dallas, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp subsidiary, Commercial Real Estate Direct, is a daily news source covering the commercial real estate capital markets. Trepp is wholly owned by Daily Mail and General Trust (DMGT). About Commercial Real Estate Direct: Commercial Real Estate Direct, founded in 1999 and a subsidiary of Trepp, is a daily news source covering the commercial real estate capital markets. Each day, its seasoned staff of editors and real estate journalists delivers up-to-date market intelligence on the mortgage business, equity raising, investment sales, and CMBS. CRE Direct also provides its readers with actionable data through its Property Sales Database, which details more than 25,500 large property transactions, CMBS Pricing Matrix, the industry's only weekly pricing survey, and the CMBS Pipeline, a calendar of upcoming transactions with historical pricing information. Media Contact Ennys Soydas, Trepp, Inc., 212-754-1010, press@ Twitter View original content to download multimedia: SOURCE Trepp, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
