U.S. CBMS loan prices fall in January, says DebtX

commercial real estate loan

Boston-based loan sale advisor DebtX said that commercial real estate loan prices underlying CMBS fell in January.

During the month, the estimated price of whole loans securing the CMBS universe decreased to 96.7% at the end of January from 97.6% at the end of December. Prices were 96.5% in January 2018.

“The decrease in loan prices in the CMBS (commercial mortgage-backed securities) universe in January was primarily the result of an increase in base market spreads,” said DebtX Managing Director Will Mercer.

As of the end of January, DebtX priced $1.3 trillion in commercial real estate loans that collateralize U.S. CMBS trusts. From last month, the median adjusted loan-to-value remained at 57%, and the median debt service coverage ratio was at 1.51. The median estimated loan yields were unchanged at 4.5%.

DebtX provides third-party loan valuation services for both public and private clients, as well as analytics and data based on nearly two decades of secondary market loan sales at DebtX.