The delinquency rate1 among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) was steady at 7.8% in November after registering 7.9% in October. While the distress rate—the total delinquent plus current but specially serviced loan rate—decreased to 10.5% from 10.9% last month. The 32 Avenue of the Americas loan ($142.5 million in two KBRA-rated conduits and $282.5 million in three non-KBRA rated conduits) turned nonperforming matured balloon this month after the borrower indicated it would not pay off the loan at maturity in November. However, a loan modification with an extension is being discussed. Further, 1211 Avenue of the Americas ($1.04 billion in AOTA 2015-1211) was returned to the master servicer after a modification that extended the loan’s maturity to August 2028.
In November, CMBS loans totaling $1.2 billion were newly added to the distress rate, of which 36.6% ($453.4 million) involved imminent or actual…