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 August 2019 US CMBS Delinquency Report. 

The Trepp CMBS Delinquency Rate fell again in August setting another new post-crisis low in the process. The August reading is 2.54%, a month-over-month drop of eight basis points. The delinquency rate, which started to fall after June 2017 when CMBS delinquencies totaled 5.75%, is down 110 basis points year-over-year. Since then, the rate has fallen in 22 of the last 26 months. Year-to date, the rate is lower by 57 basis points. The all-time high of 10.34% was registered in July 2012.

“The concerns about the global economy and a possible US recession have failed to have an impact thus far on the CMBS market,” said Trepp Senior Managing Director, Manus Clancy. “As volatility touched many markets in August, CMBS held steady: spreads saw only modest widening; lending and issuance continued at a healthy rate, and delinquencies continued to fall.”

The largest rate drop among major property sectors in August belonged to the retail space, with its delinquency reading dropping 28 basis points to 4.07%. The lodging delinquency rate also fell last month, by 26 basis points, reaching 1.54%. Multifamily delinquencies climbed 35 basis points to 2.39% and the office delinquency reading also rose 12 basis points to 2.83% last month. 

The overall CMBS 2.0+ delinquency rate climbed five basis points in August to 0.89%, while the percentage of CMBS 2.0+ loans in serious delinquency was up one basis point to 0.80%. The CMBS 1.0 delinquency rate dropped 145 basis points to 42.03% in August and the percentage of CMBS 1.0 debt that is seriously delinquent is now 41.97%, which is down 246 basis points from July.

The full report can be accessed at Trepp.com

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LOS ANGELES, CA – EAH Housing, an affordable housing nonprofit organization, and A2Z Enterprises, a minority and woman-owned real estate development firm, broke ground at 7600 South Vermont Avenue. The Pointe on Vermont is a mixed-use affordable housing development with 25 apartments of supportive housing for people who are experiencing or transitioning from homelessness, 24 apartments for low income households, one apartment for an onsite resident manager, and approximately 2,000 square feet of ground floor commercial space.

“Angelenos are coming together to support long-lasting, high-quality affordable and supportive housing that will bring our homeless neighbors indoors now,” said Mayor Eric Garcetti. “The Pointe on Vermont is the latest example of Prop. HHH dollars at work and another reminder of the progress taking place across the City as we confront the homelessness and housing crisis.”

“We are proud to partner with such a forward-thinking and proactive city as Los Angeles, who is really moving the needle forward on tackling homelessness and affordable housing,” said Laura Hall, president and chief executive officer of EAH Housing. “The Pointe on Vermont is a direct result of the community’s desire to help solve the housing crisis – by voting for Measure HHH and voicing their support of this development from day one of this process.”

The four tale mixed-use building will provide housing for individuals below or at 60% of the area median income (AMI). It will also have a community room with a kitchen, onsite case management and property management offices, bicycle storage, a retail commercial lease space, and a recording studio in partnership with A2Z Enterprises. St. Joseph’s Center will provide onsite supportive and resident services for all of the residents to help them maintain their health, wellbeing and self-sufficiency.

“My family and I have deep roots in this neighborhood and are dedicated to the economic development of the community,” said Antonia Feemster, president of A2Z Enterprises. “The Pointe on Vermont is a testament to our ongoing commitment.”

“All Los Angeles residents deserve the dignity of having a place to call home,” said Mark Ridley-Thomas, supervisor of District 2. “Ending the crisis of homelessness requires building affordable homes in all corners of our County — innovatively and relentlessly. EAH is part of that solution, and soon 50 more families’ lives will be transformed when they have a place to call their own.”

Funding for The Pointe on Vermont is provided by the city of Los Angeles through Measure HHH, HOME, and Community Development Commission/Housing Authority of the County of Los Angeles, the Los Angeles County Development Authority, conventional debt by US Bank and CCRC, and tax credit equity by US Bank.

“As the coauthor of Measure HHH, I remain committed to working with mission driven organizations to bring quality affordable housing to communities in South LA,” said Marqueece Harris-Dawson, councilmember for Council District 8. “I am excited to support the community and witness the transformation of an underutilized lot on South Vermont Ave into The Pointe on Vermont. Soon, this space will provide people with quality homes and services to help them transition into new lives.”

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JOHNSON CITY, TN – Monument Capital Management, an A-Rod CORP company and one of the country’s premier fully integrated real estate investment firms, announced the acquisition of Sterling Hills Apartment Homes, a 216-unit multifamily community in Johnson City, Tennessee. Monument Capital Management bought the property from Sterling Hills Apartments, LLC and will implement a $2.3 million capital improvement project throughout the property.

Located at 1 Milligan Lane, Sterling Hills Apartment Homes is the firm’s first property in the Tennessee market and will be part of Monument Opportunity Fund IV, launched earlier this year. The firm owns a total of 25 properties totaling over 5,300 units throughout the Southeast, Midwest and Texas, and is actively engaged in pursuing additional opportunities.

Senior Associate Brad Boston of Cushman & Wakefield represented the seller. Monument Capital Management represented itself in the transaction.

“The Southeast region continues to demonstrate strong job and population growth conducive to demand for workforce housing with upside potential,” said Stuart Zook, Principal of Monument Capital Management. “The property’s location in the Tri-Cities region of Johnson City, Kingsport and Bristol made it a strategic fit in our latest Fund, with Johnson City exemplifying strong growth in the future.”

Monument Capital Management plans to carry out a number of upgrades throughout the property’s interiors and exteriors including new flooring, appliances, cabinets, countertops, fixtures, and washer/dryer connections. New amenities include a clubhouse, fitness center, gazebo, sport court and lush landscaping.

Built in 1980, Sterling Hills Apartment Homes offers one-, two-, and three-bedroom units averaging 876 square feet. Interiors feature a loft layout, linen closets, dishwasher and washer/dryer. Community amenities include a fitness center, basketball court, swimming pool, courtyard, grill and picnic area.

Situated about 10 minutes away from downtown Johnson City, Sterling Hills Apartment Homes is found near major employers and educational institutions. Supporting nearly 1,000 jobs and over 15,000 students, East Tennessee State University is 10 minutes away from the asset, with Mountain State Health and Citi Group also nearby.

Monument Capital Management (MCM), an A-Rod CORP company, is one of the country’s premier fully integrated real estate investment firms. Specifically targeting markets with a strong demand for workforce housing, MCM has bought $747 million of real estate assets across 13 states through opportunity funds and joint ventures. The organization strategically identifies assets in markets with attractive demographics at a deal size where competition is limited, and its seasoned team can immediately leverage its operational expertise.  The firm has excelled at its mission of investing in real estate assets where it can add value and deliver superior, risk adjusted returns, while protecting capital and mitigating downside risks.

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