Special Servicing Stabilizing?

Trepp's latest data shows relative flattening over the past four months by both aggregate dollar volume and unit count, suggesting special servicing may be stabilizing. HFF senior managing director Whitney Wilcox tells us the more interesting inference is that over the past nine months, the average size of a loan transferred to special servicing has basically tripled, from approximately $26M ($4B divided by 150 loans in October '09) to $80M (the addition of another $4B repped by only 50 loans since then). This change reflects the increasing incidence of larger, higher-profile assets falling into special servicing, he says. Whether or not this is a harbinger that more larger New York area assets will be in play is difficult to forecast, since workouts and recapitalizations should continue to play a prominent role in the r esolution of loans transferred to special servicing.

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