Another Office Tower Goes Bust: Blackstone Walks from Manhattan Tower it Bought for $605 Million. CMBS Holders to Eat Remaining Losses by Wolf Richter • Mar 22, 2022 • 150 Comments Older office towers are besieged. Working-from-home and hybrid-work aren’t helping. The losses are huge.
What are Vacant Office Towers Worth? Foreclosure Sales Show How Values of 1980s Office Towers in Houston Have Collapsed, Dishing out Huge Losses for CMBS by Wolf Richter • Feb 17, 2022 • 177 Comments The loans were securitized into CMBS in 2014. From hype to heck in 7 years. Other markets with office busts have something to stew over.
Fed’s Bond Purchases Won’t Save all Mall CMBS from Defaulting by Marc Joffe • Apr 15, 2021 • 59 Comments Subsidizing CMBS impedes the necessary market adjustment away from commercial property and toward residential redevelopment.
Eviction Bans, Surging Apartment Vacancy Rates Trip up CMBS Backed by 43 Apartment Buildings by Wolf Richter • Jan 20, 2021 • 150 Comments “Physical occupancy” rate (tenants living in the apartment) v. “economic occupancy” rate (tenants actually paying rent).
Two San Francisco Hiltons Add to Woes of Commercial Mortgage-Backed Securities. Special Servicing Rate of Hotel CMBS Spiked to 26% by Wolf Richter • Oct 12, 2020 • 84 Comments Four of the six hotels that REIT Park Hotels & Resorts owns in San Francisco are closed, with convention & business travel at near-zero.
“Remote Learning” Sinks Student-Housing CMBS, After Delinquencies Had Already Spiked in 2019 by Wolf Richter • Sep 14, 2020 • 78 Comments The formerly hot asset class was already troubled by a multiyear decline in student enrollment and a surge in upscale supply.
Jingle Mail for Malls: Even Biggest Landlords Walk from Malls as Stores Go Bankrupt, Refuse to Pay Rent, Mall Values Slashed Brutally. But those Shorting Mall CMBS Made a Killing by Wolf Richter • Aug 24, 2020 • 158 Comments Mall meltdown gets messier. But someone’s making money. Here’s how they shorted malls.
CMBS Delinquency Rate Spikes by Most on Record by Wolf Richter • Jun 2, 2020 • 87 Comments Commercial Mortgage-Backed Securities backed by hotel and mall properties get hit the hardest. Mall-REIT CBL failed to make bond interest payment yesterday.
Post-Lockdown New Normal: Many Brick & Mortar Stores Will Not Reopen, CMBS will Default, Mess to Ensue by Wolf Richter • Mar 30, 2020 • 245 Comments Neither the Fed nor the Treasury can bail out brick-and-mortar retailers.
Coronavirus May Deliver Coup de Grace to Overrated Commercial Mortgage-Backed Securities (CMBS) by Marc Joffe • Mar 24, 2020 • 72 Comments S&P made up for its tardiness by downgrading the CMBS in one fell swoop by 9 notches from AAA to BBB-, just one notch above junk.