NEW YORK, NY – Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has released its May 2019 US CMBS Delinquency Report. 

The Trepp CMBS Delinquency Rate has reached a post-financial crisis low yet again, falling 16 basis points to 2.66% in May. The delinquency rate has decreased by 146 basis points year over year, with the rate falling in 20 of the last 23 months since June 2017.

“The CMBS market has remained remarkably resilient in the face of recent volatility,” said Trepp Senior Managing Director, Manus Clancy. “Spreads have widened, but only minimally even though tariffs and trade rhetoric have taken their toll on other markets. CMBS issuance continues to march on, and as we’ve seen for the last two years, CMBS delinquencies continued to drop in May.”

The largest rate drop among major property sectors in May belonged to the retail space, with its delinquency reading dropping 33 basis points to 4.29%. Multifamily delinquencies climbed 17 basis points to 2.16% last month. The lodging delinquency reading dropped 13 basis points to 1.42% and it remains the best performing major property type. The office delinquency rate also fell by 13 basis points, reaching 2.98%.

The overall CMBS 2.0+ delinquency rate jumped four basis points in May to 0.74%, while the percentage of CMBS 2.0+ loans in serious delinquency was up eight basis points to 0.64%. The CMBS 1.0 delinquency rate declined by 209 basis points to 44.37%. Since no legacy loans were marked as 30 days delinquent, the percentage of 1.0 debt considered seriously delinquent was also down 209 basis points to 44.37%. Previously delinquent loans that were resolved with losses are responsible for the huge drops in the CMBS 1.0 delinquency figures.

The full report can be accessed at Trepp.com

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ATLANTA, GA – StoneBridge Investments of Washington, DC, has bought River Vista, a 196-unit upscale garden apartment community in the suburban Atlanta community of Sandy Springs, for $33.4 million. The seller, an affiliate of The Milestone Group, was represented by David Gutting and Derrick Bloom of JLL.

This is StoneBridge’s fifth apartment community acquisition in the Atlanta metro market over the past several years, for a total of 1,148 units. “With its strong employment growth, brilliant quality of life, and relatively low cost of living, we remain bullish on the dynamic Atlanta market,” said Kees Bruggen, Managing Director, StoneBridge Investments.  “Our location in Sandy Springs, on the GA-400 corridor, puts us directly in the path of growth, and in close proximity to fantastic schools, high-end demographics, world-class cultural amenities, and major employment centers.”

Built in 1996 on a lushly landscaped 17-acre site near the Chattahoochee River, River Vista’s strategic location provides unmatched accessibility to the booming employment hubs of North Fulton and Perimeter Center, home to nearly 300,000 jobs. Other nearby employment hubs include Northridge Plaza, Preston Ridge, Milton Park, and Sanctuary Park. Employment is growing in the technology, healthcare, finance, telecommunications, logistics, and business services sectors.

The property is less than six miles from major new office and mixed-use developments including State Farm’s Southeast Regional Headquarters, the $100 million Mercedes Benz North American Headquarters, amenity-rich High Street Atlanta, and the award-winning billion-dollar Avalon development with 570,000 square feet of retail space and 678,000 SF of office space where tenants include Microsoft and BitPay.

River Vista residents can walk, bike, or drive across the street to access part of the Chattahoochee River National Recreation Area, a serene riverside park offering trails, rafting, fishing, and other activities. This is just one of over 20 parks in the areas with over 900 acres of parkland and 184 miles of pedestrian trails including the Roswell Riverwalk.

But residents don’t even need to leave home to relax. River Vista has an outdoor swimming pool with sundeck seating, a clubhouse, outdoor kitchen and social area with grills and TV, a playground, and a 24-hour strength and cardio fitness center.

The community’s one- to three-bedroom apartments, with an average size of 1,098 SF, feature elegant crown molding, built-in shelving, hardwood-style flooring, private patios or balconies, and wood-burning fireplaces in select units. River Vista is located at 9200 Roberts Drive in Sandy Springs, about 20 miles north of downtown Atlanta.

The new ownership plans to continue and expand the ongoing interior modernization program that includes kitchen and bath upgrades, new two-inch blinds, installing full-size ensuite washers and dryers, and making fenced “backyards” for select ground-level apartments.

“River Vista has historically loved strong performance, and we believe there is a compelling growth opportunity remaining through strategic renovations and continued modernization of the property,” said Will Bateman, Director, StoneBridge Investments.  “By performing in-unit renovations along with more comprehensive exterior improvements to enhance curb appeal, we aim to close the gap between River Vista and its newer competitors while still maintaining its relatively affordable position in the submarket.”

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ATLANTA, GA – Fogelman Properties, one of the country’s largest, privately-owned and fully integrated multifamily investment and property management companies, is pleased to announce the acquisition of Ashford East Village, a 371-unit multifamily community located in East Atlanta Village. 

The community is 95% occupied and offers one, two and three-bedroom apartment homes ranging from $900 to $1,375 per month. The newly-bought property is expected to undergo a rebranding and a mix of amenity area improvements. In connection with the investment, enhancements will emphasize a modern fitness facility and the continuation of interior unit renovations including the installation of quartz countertops, vinyl plank flooring and upgraded plumbing fixtures.

Fogelman bought Ashford East Village through a joint venture with New York-based DRA Advisors. Since 2003, the Fogelman-DRA partnership has bought 28 multifamily communities totaling 9,150 apartment homes, with an aggregate value of more than $915 million. 

“Investment and revitalization continues to accelerate in the infill East Atlanta neighborhoods as residents are drawn by a mix of urban amenities such as top-rated restaurants and entertainment options including the BeltLine.” says Mike Aiken, VP of Acquisitions at Fogelman. “Ashford East Village is uniquely positioned to benefit from the growing residential demand near East Atlanta Village for high-quality housing at a discount to new construction nearby.”

Fogelman Properties is one of the country’s largest and most experienced privately-owned multifamily investment and property management companies.Founded in 1963, Fogelman operates 88 multifamily communities totaling 28,000 apartment homes spread across 10 states in the Southeast, Southwest, and Midwest.

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