Large Bank Supervision Forum 2023

MATURITY DEFAULTS CMBS a proxy. Office & Retail Rising/Lodging Falling

SS (Special Servicer) and DQ (Delinquency mainly due to Maturity Defaults) rising since Sept 2022. More to come in 2023. A lot of work will be required to tackle Maturity Defaults!

OFFICE CRE: “One of the largest office loans to transfer to special servicing was the $243.6 million Republic Plaza loan, which is secured by a 1.3 million-square-foot tower in Denver’s central business district. The loan defaulted on its Dec. 1 maturity date. “Conversely, the delinquency rate for loans secured by lodging properties (4.63 percent) was lower compared to the prior month. Over the course of 2022, the delinquency rate for lodging declined by more than 50 percent as part of a significant sector recovery from pandemic-related distress. “Bu-Leisure” is the new term where Lodging is performing!

Maturity Defaults: “By property type, retail ended the year with the highest delinquency rate, increasing 13 percent to 7.91 percent . “December’s delinquency retail rate was pushed higher in December by several maturity defaults, including a $162.9 million loan secured by West County Center in Des Peres, Mo., which defaulted on its Dec. 1 maturity date. The collateral is a 743,945 SF portion of a regional mall owned by CBL. MF CRE Up too: “In addition to retail, delinquency rates for multifamily (2.61 percent), office (1.76 percent) and industrial (0.17 percent) also exhibited month-over- month increases in December.

https://commercialobserver.com/2023/01/cmbs-delinquencies-increased-in-late-2022/#.Y8C3__aR7Zs.linkedin

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• 353 Office loans maturing by 2025 incl. 583 Office bldgs. • All bldgs. in “Large MSAs (NY, Boston, San Fran, etc.) • 56% Loans are Floating rate

https://www.trepp.com/trepp-cre-direct-year-end-magazine-2022

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