CMBS Loan Losses Spike in January

CMBS Loan Losses Spike in January

CMBS loan loss volume rose in January, with $246.9 million across 14 loans resolved for $167.0 million in total losses and an average loss severity of 67.63%. Trepp reported this was a significant uptick in loan loss volume from December, when losses were just $71.8 million. It was the largest monthly loan loss total since last September, according to Trepp data.

The 12-month moving average monthly disposed balance decreased to $204.4 million in January, down from the $252.8 million a month prior. The 12-month moving average loss severity inched up to 62.65%, from the 62.38% recorded in December.

Although the overall disposed loan total was below the previous 12-month moving average, the average loss and average loss severity was above the previous moving average. Over the past 12 months, the highest monthly loss severity was recorded last April at 81.47%, while the lowest was 51.3% in July.

Pictured: Kitsap Mall in Silverdale, WA, the largest CMBS loan to be resolved at loss in January.

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