As the Covid-19 crisis places extraordinary stress on commercial real estate, distressed CMBS loans are being transferred into special servicing at an unprecedented rate.
A new report from Moody's Analytics and loan special servicer CWCapital examines the crisis' impact on commercial mortgage-backed security loans by property type, finding that fully 96% of the loans transferred to special servicing from March 1 through the third week in May were for hotel and retail properties.
The balance of CMBS loans in special servicing had reached $32 billion by May 19, with a $9.6 billion increase for the May remittance period, according to the report, which said the volume of distressed loans shifted to special servicing in such a compressed time period was unprecedented.
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Meredith Hobbs
Meredith Hobbs writes about the Atlanta legal community and the business of law. Contact her at mhobbs@alm.com or 404.419.2837. On Twitter: @MeredithHobbs.
