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CMBS Matured Positively In March, Almost $9B Due In April

Wells Fargo Tower in Los Angeles

Though many were concerned this year's massive retail closings would hurt the $6.7B in commercial mortgage-backed securities due to mature in March, CMBS performance was positive last month and almost 86% of the maturing debt was paid in full.

The average loss severity for loans liquidated last month was lower than at any other time within the past 12 periods, according to the latest Trepp report. In March a total of $8.9B in CMBS loans were paid off. 

Over the next six months $55.8B in CMBS debt will mature, of which office real estate accounts for 26.25% and retail comprises 26.63%. Of the $8.7B CMBS debt set to mature in April, more than 8.94% is in default. The $550M CMBS mortgage for the Wells Fargo Tower in Los Angeles is the largest loan due in April. Wells Fargo occupies 20% of the building and the loan is expected to be paid off through refinancing before it matures.