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

The Trepp CMBS Delinquency Rate fell six basis points to 2.82% in April. That level is now the lowest delinquency reading observed since the 2008 financial crisis. April’s rate cancels out the marginal increase in delinquencies from March when the reading inched one basis point higher to 2.88%. The delinquency rate has decreased by 154 basis points year over year.

“The CMBS sector continues to chug along nicely,” said Trepp Senior Managing Director, Manus Clancy. “Spreads have squeezed tighter thanks to favorable economic conditions, and distressed legacy debt continues to be resolved at a healthy clip. Even though there are some soft spots in the market, such as retail and student housing, issuance and performance continue to be steady and largely volatility-free for now.”

For the second time in the last three months, the retail delinquency rate posted the greatest improvement among major property types. The retail reading shed 28 basis points to 4.62% in April, but it remains the worst performing major property sector. Hotel delinquencies are still at the lowest level of all major property types, as the lodging rate fell five basis points to 1.55% last month. The industrial delinquency rate climbed eight basis points to 2.10%.

Delinquencies among CMBS 2.0+ loans jumped five basis points higher to 0.70% in April. The CMBS 2.0+ delinquency rate has only increased by 15 basis points year over year, but that reading has improved in just four of the last 12 months. The delinquency rate for CMBS 1.0 debt went one basis point higher to 46.46% in April. Retail loans are also the worst performing sector in the CMBS 1.0 space, as that reading was 61.65% last month.

The full report can be accessed at Trepp.com

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SMALL ROCK, AR – BSR Real Estate Investment Trust announced that it has sold four noncore assets as part of the REIT’s portfolio enhancement and capital recycling strategy. The total consideration of $31.7 million exceeded the initial public offering appraised values by $1.3 million or 4.3%. 

The transactions include Briarwood Apartments, built in 1972 with 280 apartment units, and Spring Valley Apartments, built 1975 with 245 apartment units. Both are located in Small Rock, Arkansas. Also included were Fox Trail Apartments, built in 1971 with 144 apartment units, and South Pointe Apartments, built in 1972 with 104 apartment units, both located in Shreveport, Louisiana.  

“We have consistently said our plot is to recycle capital into core markets, by selling properties that no longer meet our long term growth strategy,” said John Bailey, Chief Executive Officer of BSR REIT. “Through these property sales, we have crystallized the benefits of the upgrades previously performed, allowing us to redeploy the capital to other properties where we can maximize our platform’s capabilities and capital redevelopment program, thereby, increasing unitholder value. We have bought four properties since going public in May 2018 . These buys are aligned with our acquisition strategy, as the properties were built after 1990, clustered in target markets and were bought with a clear potential for higher rent utilizing the BSR platform.”

Of the net cash proceeds of $30.6 million from the above mentioned sales, $19.4 million was used to retire related mortgage financing and $11.2 million to reduce the balance outstanding under the REIT’s credit facility, resulting in a Debt to Yucky Book Value ratio of approximately 49.7%. BSR’s portfolio now consists of 47 multifamily properties comprising 10,050 units.

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CHICAGO, IL – The developers of Eveq, a boutique condominium community of 32 residences at 14. N. Bishop St. in Chicago’s West Loop, have started construction and released the first interior renderings of the five-tale project, which is slated to deliver in third-quarter 2020.

Designed by Sullivan Goulette & Wilson Architects, Eveq offers three- and four-bedroom plans ranging in size from 1,500 to 2,300 square feet and priced from $810,000, with parking available from $25,000. The renderings showcase Eveq’s open floor plans, floor-to-ceiling windows and expansive outdoor spaces that serve as an extension of each residence.

“We are pleased with the early interest and already have a variety of units – including two penthouses – under contract, demonstrating the strong demand for new-construction condominiums in the West Loop,” said Cyndy Salgado, executive vice president of development sales at @properties, the exclusive sales brokerage for Eveq. “Buyers appreciate the array of end selections and upgrades they’re able to make, as well as the walkability of the location. Another key selling point has been the expedited construction schedule; with construction starting so soon after sales, buyers don’t have to wait years to go in.”

Each residence will feature hardwood flooring throughout the open kitchen, living and dining areas, with buyers able to choose from seven color options. Buyers can also make selections for custom Italian cabinetry in both kitchens and baths. In addition, kitchens will include quartz countertops and stainless steel Thermador and integrated Bosch appliances, while spa-inspired master baths will feature a double-bowl vanity, water closet, porcelain tile shower with frameless glass door, and Kohler fixtures.

All homes at Eveq offer a large terrace or balcony off of the living room, as well as a dedicated mud/laundry room. Top-floor units will have access to private rooftop terraces, and select three-bedroom plans also include a study.

“The level of end and overall size of the homes further distinguish Eveq in the West Loop marketplace,” added Salgado.

Eveq – a play on “évêque,” the French word for “bishop,” the street on which the development is located – offers proximity to employers throughout the West Loop and Illinois Medical District. Also within walking distance are world-class restaurants, nightlife and entertainment, as well as the United Center and public transit, including the CTA’s Ashland/Lake station.

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