NEW YORK, NY – Trepp, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, released its July 2017 US CMBS Delinquency Report.

After the Trepp CMBS Delinquency Rate climbed by its highest amount in more than five years last month, the reading rescinded by nearly the same figure in July. The delinquency rate for US commercial real estate loans in CMBS is now 5.49%, a decrease of 26 basis points from June. The July 2017 rate is now 73 basis points higher than the year-ago level.

“We may see the delinquency rate dance around a bit over the next few months as we enter the final innings of the wall of maturities,” said Manus Clancy, Senior Managing Director at Trepp. “There are enough large loans that can be resolved via modification, default, or refinancing that we may see the status of those assets change over the next few months. It’s a fittingly uncertain ending for many loans that have been mired in uncertainty for nearly a decade.”

About $1.4 billion in CMBS loans turned newly delinquent in July, which is around $1 billion less than the total that became delinquent in June. Nearly $1.2 billion in previously delinquent loans were cured last month, and roughly $1.7 billion worth of previously distressed debt was resolved with a loss or at par.

Delinquency rates for four of the five major property types fell last month. The multifamily reading shed 101 basis points to 2.91%, which helped the apartment sector reclaim the title of best performing major property type. The industrial delinquency rate dropped 61 basis points to 6.96%. As the only sector with a higher reading in July, the rate for the lodging sector climbed 15 basis points to 3.68%

For additional details, such as delinquency status and historical comparisons, visit Trepp.com.

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NASHVILLE, TN – A fund managed by Nashville-based Covenant Capital Group has completed the sale of 500 5th Avenue, a 170-unit apartment community located in downtown Nashville originally built in 1961. The property was formerly known as the Metro Manor Apartments.

The sale comes after Covenant invested over $8.2 million in the project, including spending more than $4 million to renovate and modernize the property.

“We’re pleased to have been able to invest in our hometown by significantly updating 500 5th Avenue and adding modern energy efficiencies to extend its life and ensure its standing as a vibrant community for downtown Nashville residents for decades to come,” said Govan D. White, managing partner and co-founder of Covenant Capital Group.

Covenant bought the property on June 16th, 2015 for $15,760,000. Selling it on July 28th, 2017 for $27,300,000 to 500 Fifth, LLC.

With Covenant’s more than $4 million enhancements, the project was able to add many features that enhance life at the property, sustaining valuable apartment inventory in Nashville’s downtown market in the process.

This included aesthetic enhancements like a new modern entrance, fitness center, Wi-Fi and business lounge, bike room, leasing office as well as a sky terrace and rooftop pool. In addition, Covenant renovated all apartment interiors with new granite countertops, all new stainless steel energy efficient appliances, new cabinetry and modern finishes.

Covenant’s efforts also went to increasing the energy efficiency and greening the building. It replaced all windows with double-paned energy efficient windows. All existing toilets and faucets were also refitted with low-flow plumbing fixtures which delivered a 30% reduction in water consumption at the property – all of which reduces costs to residents.

Covenant Capital Group, formed in 2001, is a value-add investment manager with an exclusive focus on the acquisition and renovation of apartment communities in major southeastern and mid-atlantic markets. It focuses on transforming and repositioning properties into premier institutional quality assets. Covenant has over $1 billion in real estate assets under management and controls over 9,250 apartment units.

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CHICAGO, IL – Monument Capital Management, a division of A-ROD CORP and one of the country’s premier fully integrated real estate investment firms, expanded their footprint into the state of Illinois with the acquisition of Residences at 1550, a 509-unit apartment community located in Mt. Prospect. Located less than one hour from Chicago, the property will be managed by the firm’s sister company, Monument Real Estate Services.

Located at 1550 West Dempster Street, Mt. Prospect, IL, the property is situated on 20 acres and includes one-, two- and three-bedroom garden and townhome style floorplans. It is near a major employment hub, with major companies such as IBM, Automatic Data Processing (ADP), Alexian Brothers Medical Center, Motorola Solutions and others nearby. Amenities include a clubhouse, pool, fitness center, community room, business center and a playground.

Monument’s plans for the property include selective upgrades to the units, and exterior landscaping enhancements.

“We are very pleased to expand Monument’s footprint with this acquisition, our first in Illinois,” said Gregory Lozinak, CEO of Monument Capital Management. “It ideally fits our overall growth strategy and allows us to implement our proven value-add program to this community, which benefits the residents we serve.”

“Mt. Prospect as a whole is a young community, with the median age under 40,” adds Lozinak, “and there is a need for workforce housing noting the many vital corporations operating in and near the community.”

Monument Capital Management (MCM) executes transactions on behalf of the three investment funds it directs, as well as acquisitions on behalf of a select number of private investors. Under its first two funds, MCM has more than $325 million of assets under management in multifamily properties Southwest, Southeast, Midwest and Mid-Atlantic regions of the U.S.

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