New York City single-tenant retail properties are showing increasing signs of distress. While there has been more focus on troubles and bankruptcies among big-box retailers, including Lord & Taylor, J. Crew, and Brooks Brothers, data from DBRS Morningstar found an unusually high level of delinquencies among single-tenant retailers as well. In total, the report found 14 CMBS loans totaling $467.4 million that were either delinquent or in special servicing.

The collateral for a loan at 170 Broadway, a 16,135-square-foot retail condo project occupied by the Gap, is the most significant delinquency among single-tenant retailers. The $70 million loan was transferred to special servicing in July after the tenant stopped paying rent. The special servicer cancelled the tenant's coronavirus-relief package because of insufficient information, and the Gap filled a lawsuit to prevent the landlord from terminating the lease. Litigation is ongoing.

345 West 14th Street is another example of single-tenant delinquencies. The 8,405-square-foot property is occupied by Columbia Sportswear. The store has been temporarily closed during the pandemic, and the $18.5 million loan was transferred into special servicing in July at the request of the borrower, who was seeking coronavirus relief. The tenant's lease expired in October, and it is unknown if they will choose to renew.