The 30+ day delinquency rate among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) increased to 7.7% in March from 7.5% in February, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) was steady at 10.3%. 1,2
The multifamily sector saw a 92-basis point (bp) increase in its distress rate as 18 loans became delinquent. Twelve of the newly delinquent loans were securitized in eight deals in 2021-25 vintages. The largest of these is the $62.5 million Waterford Grove Apartments loan in MSBAM 2025-5C1, which also transferred to the special servicer for imminent monetary default. The borrower failed to obtain a Housing Finance Corporation (HFC) tax exemption by February 2026, which triggered a requirement for the borrower to pay down the principal balance under the terms of the loan agreement. The borrower’s failure to remit the…
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