NEW YORK, NY – Trepp, a leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its December 2016 US CMBS Delinquency Report.

The Trepp CMBS Delinquency Rate ascended sharply in December, as the reading reached its highest level in 14 months. The delinquency rate for US commercial real estate loans in CMBS is now 5.23%, an increase of 20 basis points from November. The rate fell 102 basis points over the first two months of the year and hit a multi-year low of 4.15% in February. But, those gains have been erased thanks to loans from the 2006 and 2007 vintages that have reached their maturity dates and have not been paid off via refinancing.

“The CMBS market opens 2017 in uncharted waters,” said Manus Clancy, Senior Managing Director at Trepp. “Issuers are now required to adhere to risk retention compliance, and higher lending spreads and interest rates could be in the offing for borrowers. All of this comes at a time when loans securitized in 2007 are coming due in droves.”

About $150 million in CMBS loans were cured last month, while only $422 million in previously delinquent loans paid off at par or with a loss. These totals are much smaller than the average levels for the past 12 months. Conversely, a hefty $1.7 billion in CMBS loans became newly delinquent in December.

The office delinquency rate underwent the largest month-over-month increase in December, as well as the largest year-over-year increase among all major property types. The office reading jumped 56 basis points to 7.13% last month, and climbed 134 basis points from last December. Though the lodging delinquency rate shed six basis points in December to 3.57%, that sector’s reading posted the second-largest year-over-year increase in 2016. Apartment loans remain the best performing property type, as the multifamily delinquency rate dropped 556 basis points year-over-year.

The report can be found at Trepp.com  

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NEW YORK, NY – Ultra-luxury multifamily assets in Manhattan remain in high demand, leading to strong interest from the lending community. On behalf of JDS Development Group, Capital Markets experts announced the firm secured $660 million in financing for the American Copper Buildings at 626 First Avenue in Manhattan. AIG provided a $500 million senior loan while Apollo Global Management and SL Green provided a $160 million mezzanine loan. The financing is interest-only and carries a three-year term.

Managing Director Aaron Appel, Executive Vice President Michael Diaz and Senior Vice President Mark Fisher led the JLL team on the transaction. Matt Phillips and Gregory Gleicher led the JDS team.

“This deal is representative of the appetite investors have for product that fulfils the huge demand for high-quality multifamily assets in Manhattan,” said Appel. “Due to the building’s 421-a tax abatement designation, the owners were able to build the towers in what would otherwise have been a prohibitive funding environment. There is really no comparable product in the city, which made this a highly sought-after lending opportunity.”

Located along the waterfront of the East River, the East and West towers are 41 and 48 tales, respectively. The ShoP Architects-designed, copper-clad towers are connected by Manhattan’s first sky bridge in 80 years and include 601 market rate units and 160 affordable units. The buildings also include 13,441 square feet of ground floor retail space.

Amenities include a rooftop infinity pool on the East tower along with a resident bar and lounge with views of the Manhattan skyline. Both buildings will also have access to a 24-hour concierge, a secure 294-spot parking garage and a two-tale, state-of-the-art fitness center. Units will include custom finishes such as stone countertops, stainless steel appliances, custom wood cabinetry, built-in speakers, hardwood floors, urban mud rooms, and washers and dryers.

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MIAMI, FL – In early 2017, the nation’s largest multifamily developer, Alliance Residential Company, will open two of its signature Broadstone properties for the South Florida renter by choice – the elegant waterfront Broadstone Harbor Beach in Fort Lauderdale and swanky 24-tale Broadstone at Brickell in Miami’s financial district.

“This region of South Florida offers a unique blend of world-class beaches with a vibrant nightlife and significant business and industry, all within walking distance from Broadstone Harbor Beach and Broadstone at Brickell,” said Robert Hall, Managing Director of South Florida for Alliance Residential Company. “Both communities are everything Broadstone living is about. Alliance has been part of this growing region since 2007 and we are excited for residents to delight in our amenity-rich developments alongside the beach and individual style that suits their life.”

The 394-unit Broadstone Harbor Beach is located at 1721 SE 17th St. in Fort Lauderdale. The community’s design is inspired by the one-of-a-kind Florida coast, which is within close proximity to the gorgeous Fort Lauderdale beaches. The studio, one- and two-bedroom units are currently preleasing, with leases starting from $1,650 to $3,875, and feature open nine-foot ceilings, private balconies and patios, and chef-quality kitchens. 

Broadstone at Brickell’s 24 tales are perched at 255 SW 11th St in the heart of Brickell, within walking distance to Brickell Village and Brickell City Centre. Inside the gated community are 372 homes that range from studios to two-bed, two-and-a-half-bath townhomes, which are now preleasing. The homes are designed to blend with downtown Miami’s modern, clean style, with leases ranging from $1,759 to $3,760. Broadstone at Brickell’s amenities include expansive and well-equipped kitchens, spacious custom cabinets, tile flooring throughout common living spaces and luxury bathrooms.

Broadstone communities are designed to bring a lifestyle of amenities to residents. Inside both properties, residents can delight in a private movie theater, an expansive fitness center with a yoga studio and signature boxing ring and a resort-style pool with an outdoor lounge and cabanas. At Harbor Beach, amenities also include a courtyard with outdoor games, outdoor shower, a dog park and a massage room. Further south at Miami’s Brickell property, custom amenities include bike repair and storage, a pet spa, a 24-hour business center and a sleek cyber café.

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