CMBS Special Servicing Rate Reaches Highest Level Since 2013
The CMBS special servicing rate increased by 33 basis points in August to reach 11.42%, the highest level since February 2013, according to Trepp's report. New transfers totaled $3.16 billion across 32 whole loans, primarily driven by large office and mixed-use maturities. Only about $500.7 million in loans exited special servicing during the same period. The largest transfer was a $1.10 billion loan backing an LA-based Hollywood studio-and-office portfolio that exhausted its extension options before maturity on August 9. The second-largest transfer, at $377.6 million, secured by eight office buildings near Washington D.C., defaulted due to an imminent balloon payment. These transfers highlight the growing refinancing and maturity pressures rather than missed monthly payments. Office special servicing rose significantly to 16.90%, with retail also climbing to 13.60%. Mixed-use saw a sharp increase of 154 basis points, largely due to the LA portfolio transfer. Industrial and multifamily sectors showed slight improvements.
Topics: CMBS loan transfers office sector stress special servicing rate