2019 Special Servicing Rates

A total of 26 loans totaling $910.2 million were newly transferred to special servicing in April, according to the Trepp Special Servicing rate, which increased 11 basis points.
Source: Trepp

The Trepp Special Servicing rate jumped 11 basis points higher to 3.5 percent in April. This is the first month-over-month increase in the special servicing reading since July 2018 and is the largest rate hike in the last two years. A key culprit for the overall bump was the 24-basis-point jump in the retail sector’s rate. The special servicing readings for the other four major property sectors also increased. A total of 26 loans totaling $910.2 million were newly transferred to special servicing in April.

The largest notes that were transferred to special servicing in April were the $300 million Destiny USA Phase I loan and the $130 million Destiny USA Phase II loan. Both pieces are collateralized by the Destiny USA superregional mall in Syracuse, New York.

—Posted on May 20, 2019


Source: Trepp

The Trepp Special Servicing Rate fell by 14 basis points to 3.5 percent in February, as we continue to see a steady reduction in the volume of CMBS loans that are in default. An important driver in the decline of the special servicing rate can be attributed to the CMBS 1.0 universe, while the special servicing rate for CMBS 2.0 loans remained relatively stable (down just two basis points month over month).

A total of 30 loans which were flagged as specially serviced in January 2019 were no longer classified as such in February 2019. Those loans were removed from the list because they were either returned to the master servicer or were retired. The special servicing rate is 136 basis points lower year over year. Major reductions in the volume of loans in special servicing occurred in Q3 2018 and Q1 2019.

—Posted on Apr. 19, 2019