Special Servicing Down

In July, the number and volume of loans in special servicing decreased from the previous four months, fresh research from Trepp shows. But experts we talked to wondered if the stats might be an anomaly, as CRE defaults continue to increase.
 
Loans in special servicing have declined to about $2B this month, but Grubb & Ellis' Dirk Riekse and Charmaine Ali tell us that in general loan servicing is going up. They expect the large volume of 2005-2007 vintage loans maturing in 2010-2012 to create a continued flow into special servicing. Chicago is doing better than some other areas, like Florida, Arizona, and  California, which have had a much greater share of specially serviced loans as those markets were especially hard hit in the recession.
Podolsky Northstar CORFAC International's Randy Podolsky, here with his brother  Steven, is working as a receiver for several Chicago- area properties. He says special servicing is already overwhelming, but he's expecting it to get slowly busier as more commercial loans come due. He's shocked to see that special servicing is down, but he says there was also a light month in January before it went right back up again. While he's seeing some improvement in residential foreclosures, Randy anticipates several more months of hard times for commercial lending.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Chicago Newsletters
Related Stories

What's At Stake For CRE In Tuesday's U.S. Midterm

From Pandemic Darling To Cautionary Tale: Pickleball Clubs Face A Reckoning After Betting Big On Retail Space

Morningstar Releases New Details On Over 350K SF In Q3 Office Leases

New Bears Stadium Proposal Floated For Bridgeport

Prologis To Develop 3.8M SF Industrial Park On Former Casino Site

Foundry Robotics Leaves San Francisco For New East Bay HQ

Tenant Rep Firm Expands To Philly, Hires Industry Veteran

$120M Ambulatory Center Planned For Suburbs: The Chicago Deal Sheet

Data Centers Lose The Top Spot, San Francisco Jumps 40 Places: 9 Takeaways From ULI's 2027 Outlook

Obama Center Shows Chicago Is Starved For Development

Mapped: Major Chicago Office Sales Since 2024

Cushman & Wakefield, NYC Added To Suit Alleging $250K Agency Lease Shakedown