Distress is increasing among top commercial real estate collateralized loan obligation (CRE CLO) issuers, with nearly half experiencing distress. New York City trophy buildings are at the top of the list for new debt placed on downgrade watch. Joe Sitt incurs a $97 million loss on a high-end retail property on Madison Avenue, reflecting a loss severity in the 50% range for once top-rated assets. CMBS buyers face their first loss on AAA debt since the financial crisis, with top bonds backed by a loan for 1740 Broadway in NYC repaid at 74%. Industry analysts caution of more challenges ahead in the safest CMBS sector, with delinquency rates rising to 6.4% in April, the highest level since 2018.
CMBS delinquency rose to 6.4% in April, the highest level since 2018 The market also saw its first AAA loss. #MacroEdge
First loss on an AAA-rated slice of a CMBS deal since 2008 right here - backed by 1740 Broadway in NYC. https://t.co/sAJrrQmyKV by @ArroyoNieto & @natalexisw https://t.co/gucXVnkXQz
CMBS Buyers Suffer First Loss on AAA Debt Since Financial Crisis Top bonds backed by loan for 1740 Broadway in NYC repaid 74% Industry analysts warn of more pain to come in safest CMBS By Carmen Arroyo and Natalie Wong @natalexisw #CMBS #CMBX #CRE #AAAlosses https://t.co/o9OoCUTaGh
Joe Sitt takes $97M loss on one of Madison Avenue’s priciest retail properties https://t.co/1eBQQCEzvO | Peeps keep asking why we be so negatory on NYC #CRE. Because of the numbers. Loss severity in 50% range for once gilt edge #IG assets?
New York City trophy buildings top list of new debt placed on downgrade watch | Morningstar #CMBS https://t.co/lQdAQ2fPf1
Distress Up in Nearly Half of Top CRE CLO Issuers – Commercial Observer #CMBS @cred_iq https://t.co/fvjGyyDcko