Friday, April 13, 2018

2012-Vintage CMBS Mall Loans Holding Up with Few Defaults

NREI Online
Amid the steady stream of bad news about the retail real estate sector, CMBS analysts have found a glimmer of hope: mall loans originated in 2012 and underpinning $4.05 billion of CMBS deals are performing better than previous vintages and have better prospects for refinancing.

Low interest rates, healthy debt service coverage ratios and a robust economy have enabled more than 75 percent of these mortgages to post stable or improving cash flows since they were underwritten, according to an assessment from Morningstar Credit Ratings.. . . more