The balance of commercial mortgage-backed securities (CMBS) loans in special servicing was $80.5 billion as of June 30, compared to $83.1 billion at year-end 2011 and $85.6 billion for the same time last year, according to new data released by Fitch Ratings.
Fitch Ratings adds that the decline has occurred despite a slowdown in resolutions. During the first half of this year, 1,242 CMBS loans were resolved, compared to 1,556 loans resolved in the first half of 2011 and more than 3,100 for all of 2011.Â
LNR Partners, Inc., CIII Asset Management and CW Capital Asset Management resolved more than half of their total loans in special serving during this time period, although dispositions methods vary. LNR has liquidated during the first half of the year, while CW and CIII liquidated 68% and 70%, respectively.
Furthermore, Fitch Ratings determines that overall time in special servicing for resolved CMBS is increasing. For loans resolved in the first half of this year, the average number of months in special servicing was 18.2 – in 2009, the average was 9.1 months.