In June, 8.2% of outstanding retail commercial mortgage-backed securities loans were delinquent, unchanged from the previous month, according to KBRA.

Three large loans secured by malls that had been delinquent became current in June: a $174.7 million loan for Waterford Lakes Town Center in Orlando; a $152.3 million loan for Glenbrook Square in Fort Wayne, Indiana; and a $109.2 million loan for Colonie Center in Albany, New York.

But seven retail CMBS loans went delinquent, according to KBRA: two in a large-loan transaction that failed to pay off at maturity and five in conduits. According to KBRA, a loan is delinquent when the loan servicer reports payment to be late by 30 days or longer.

Borrowers in other commercial real estate sectors are having an easier time staying current. Only 5.2% of the $303 billion of all outstanding CMBS loans were delinquent in June, down from 5.4% in May. This is the 12th consecutive month during which the rate has declined or was flat from the previous month. The peak was 8.2% in June 2020, according to KBRA.

Of the CMBS loan principal balance that became current in June, 39.2% was secured by retail, 37.2% by lodging, 15.8% by mixed-use and 5.8% by office. Retail also led the way, however in newly delinquent principal loan balance, at 62.4%, followed by lodging at 15.2%, multifamily at 10.9%, office at 6.4% and mixed-use at 3.5%.

5 recent retail financings

JLL Capital Markets arranged a $63.8 million refinancing for the 216,813-square-foot Midtown Shopping Center in the high-barrier-to-entry Mid City neighborhood of Los Angeles. JLL placed the five-year, floating-rate loan with LoanCore Capital. The borrower used the proceeds to pay off debt. The seven-building center, pictured at top, sits on 14.5 acres, is anchored by supermarket chain Ralphs and is 88% leased to tenants like Living Spaces, Planet Fitness and CVS. Hancock Real Estate Strategies also advised the borrower.

Mortgage banking firm PSRS arranged a 10-year, interest-only, nonrecourse, $40 million loan from an insurance company for Primestor’s La Alameda in Walnut Park, California. The 245,000-square-foot property’s six building clusters comprise 227,000 square feet of retail and 18,000 square feet of office. Retail tenants include Bank of America, Chipotle, Marshalls and Ross Dress for Less.

Gantry secured $36 million in new permanent financing from a life company for Seattle’s SODO Urbanworks, which features Washington state winery retailers and eateries. The five-year, fixed-rate loan is for 67% of the purchase price. According to Brian Bonipart, principal in Gantry’s Seattle office, “Essential retail and exceptional retail are back on the radar for many of Gantry’s life company and other top-tier debt sources.”

Associated Bank completed a $26.7 million loan to Shorewood Development Group for the acquisition and revitalization of Market Meadows Shopping Center, a 148,700-square-foot, Jewel Osco-anchored shopping center, in Naperville, Illinois. Shorewood also is constructing a three-tenant, 6,855-square-foot outlot at the center, as well as a Lock Up Self Storage. Existing tenants also include US Bank, McDonald’s and T-Mobile, and new leases have been signed with Chipotle, BMO, Jersey Mike’s, Big Blue Swim School and Delta Life Fitness.

NorthMarq negotiated the $8 million refinancing of a Cub grocery store in Shorewood, Minnesota. The single-tenant retail property was financed with a 15-year term at a sub-3% rate. NorthMarq arranged the permanent, fixed-rate loan through one of its correspondent life insurance lenders.