The volume of commercial mortgage-backed securities (CMBS) conduit loans liquidated in January spiked sharply, jumping 51% from December's reading, according to new data released by Trepp LLC. The January reading was the third highest total since Trepp began tracking this number in January 2010.
At $1.58 billion, liquidations were about 21% above the 12-month moving average of $1.3 billion per month. Since the beginning of 2010, special servicers have been liquidating at an average rate of about $1.09 billion per month.
In January, liquidations came from 168 loans. This compares to 122 loans that were liquidated in December. January's liquidations resulted in approximately $623 million in losses, with the average loan size for a liquidated loan at $9.4 million. Over the last 12 months, the average size of liquidated loans has been $8.6 million.