The delinquency rate1 among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) increased to 7.9% in August from 7.5% in July. However, the total delinquent plus current but specially serviced loan rate (collectively, the distress rate) remained stable at 10.6%. The conduit multifamily delinquency rate increased 178 basis points (bps) month-over-month (MoM) to 7.2%, largely due to the Park West Village loan ($254 million in six KBRA-rated conduits including $66.5 million in rake certificates in BBCMS 2022-C17), which became delinquent.
In August, CMBS loans totaling $1.6 billion were newly added to the distress rate, of which 33.8% ($556.2 million) involved imminent or actual maturity default. The multifamily sector experienced the highest volume of newly distressed loans (40.8%, $672.3 million), followed by office (35.7%, $588.5 million), and retail (9.4%, $154.5 million).
In this report, KBRA provides observations…