- $68 million fixed-rate Fannie Mae Conventional loans
- Multifamily - 1,106 units across four properties
- Philadelphia-Camden-Wilmington MSA, Pennsylvania and Delaware
Industry News and Transactions
Regional Transactions and Market Commentary
Goldman Sachs, Citigroup and Jefferies & Company are preparing to launch GSMS 2012-GCJ7, a CMBS issue of approx. $1BN. The top 10 leans total $693.8MM and the top 3 loans in the pool are secured by properties located in Washington, D.C. This will be the 7th CMBS deal to price in 2012 and with bring total 2012 CMBS issuance to approx. $8BN.
42.2% of performing CMBS loans that matured in April 2012 were paid off according to Trepp, up from the very low payoff rate of 34.9% in March 2012 and the 12-month average payoff rate of 41%.
The 60-day delinquency rate for CMBS loans increased to 8.53% in April 2012, up from 8.43% in March 2012 and 8.30% in February 2012.
50 CMBS loans totaling $1.2BN were transferred to special servicers in April 2012 according to Fitch. This represents a sharp decrease from the 72 loans totaling $2.4BN that were transferred to special servicing in March 2012. The YTD 2012 loan volume into special servicing is 226 loans totaling $7.5BN. Ratings agencies are predicting that there will be a significant increase in the number of loans greater than $20MM that enter special servicing as the first large wave of 5-year loans mature. YTD in 2012, 70 such loans, totaling $6.1BN, or 81%, of the total loans transferred to special servicers, had balances greater than $20MM.
1,263 CMBS loans with a balance of $8.2BN were liquidated via note sales in 2010 and 2011 according to Fitch. This equates to 30.4% of the loans liquidated over this time period, making note sales the most common form of resolution. 877 loans, or 21.1%, totaling $12.4BN were resolved using a discounted payoff.
Commercial mortgages generated returns of 0.73% in 1Q’12, up from 0.57% in 4Q’11, according to the Giliberto-Levy Commercial Mortgage Performance Index.
Manhattan multifamily rents increased across all categories in April 2012 according to Citi Habitats, despite the fact that there were 6% more rental listings on the market. The average Manhattan rent in April 2012 was $3,428 PSF, up from $3,317 PSF in March 2012. Average rents increased between 3% and 5% based on location. The Manhattan vacancy rate for April 2012 was 1.16%, down from 1.25% in March 2012. but up from a year ago when it hit 0.94%
