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By Marine Cole
The delinquency of a $3 billion loan on the Peter Cooper Village and Stuyvesant Town housing development in Manhattan dampened the commercial mortgage-backed security market in March.
It represented almost 70 percent of the $4.3 billion total value of the 343 loans that went delinquent last month.
The Cooper/Stuyvesant loan also pushed the delinquency rate on loans included in CMBS up 69 basis points in March to 6.42 percent, according to Moody's Investors Service. That represents the largest one-month increase on record.
Of the increase, 45 basis points was attributed to the Cooper/Stuyvesant loan. It also caused the multifamily delinquency rate to jump 283 basis points to 12.19 percent, making it the worst performing sector.
But despite the massive delinquency, analysts see the increase in the delinquency rate of loans of multifamily and hotel properties slowing down. Meanwhile, the delinquency rate for properties with longer lease terms, such as office and retail, continues to accelerate.
"We expect this trend to continue, with the performance of multifamily and hotel properties bottoming out this year and that of office and retail continuing to deteriorate for several more quarters," said Nick Levidy, a managing director at Moody's in a press release Wednesday.
The delinquency rate for retail loans rose 35 basis points to 5.57 percent; for office properties, it rose 14 basis points to 4.12 percent; and for hotels, it rose 63 basis points to 11.27 percent.
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