Fitch: 3Q'15 U.S. CMBS Loan Defaults Decline Slightly

NEW YORK--(BUSINESS WIRE)-- Lower new defaults and strong new issuance levels helped bring U.S. CMBS loan defaults down slightly to 13.2% as of third-quarter 2015 (3Q'15) from 13.3% at the end of 2Q'15, according to Fitch Ratings in its latest U.S. CMBS weekly newsletter.

In 3Q'15, 38 loans, totaling $779.1 million newly defaulted during their term. This represents a decrease from 3Q'14 when 77 loans totaling $1.11 billion defaulted. This also represents a slight decrease from 2Q'15 when 70 loans totaling $797.4 million defaulted. The average size of the newly defaulted loans was $20.5 million. Nine loans had an original balance over $20 million, which made up approximately 73% of the total newly defaulted loans by balance.

Office properties were the largest contributor to new 3Q '15 defaults by loan balance, with 15 loans comprising 55.7% of 3Q defaults, five of them over $20 million. Retail properties were the second largest contributor with 12 loans at 31.8%, two of them over $20 million. Office and retail defaults were generally due to struggling occupancy levels and declining rents. Three industrial, three hotel and four multifamily loans defaulted in 3Q'15 representing 7.8%, 4.3% and 3% of total defaults respectively. The five largest defaults in 3Q'15 were:

--$163.8 million One and Two Jericho Plaza, Jericho, NY;

--$108.5 million The Mall at Stonecrest, Lithonia, GA;

--$89.8 million Vista Ridge Mall, Lewisville, TX;

--$52.5 million Fifth Third Center, Columbus, OH;

--$48.8 million Maxtor Campus, Longmont, CO.

Additional information is available in Fitch's weekly e-newsletter, 'U.S. CMBS Market Trends', which also contains recent rating actions and an overview of newly released CMBS research, including Fitch presales and Focus reports. The link below enables market participants to sign up to receive future issues of the E-newsletter: 'http://pages.fitchemail.fitchratings.com/CMBSMktOptin/'

Additional information is available at 'www.fitchratings.com'.

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View source version on businesswire.com: http://www.businesswire.com/news/home/20151102006017/en/

Fitch Ratings
R. Brook Sutherland
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Fitch Ratings, Inc., 70 W. Madison Street, Chicago, IL 60602
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Source: Fitch Ratings

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