“I think the agents are doing what they can to help borrowers get by,” he said.

Many retail business owners need all the help they can get. The pandemic has club owners clubbed and other commercial properties, as many cash-strapped retailers, forced to close their stores, stopped paying their rent.

As a result, many homeowners missed their mortgage payments, including Simon Property Group, owner of the Gurnee Mills Shopping Center to Gurnee, who has a mortgage of $ 257 million. A KKR joint venture that owns Yorktown Center in Lombard has stopped paying its $ 107 million mortgage. In Joliet, Starwood Capital Group missed its April and May payments on an $ 85 million mortgage secured by the Louis Joliet shopping center.

The default rate for local commercial real estate CMBS loans reached 13.4%, up from 7.8% in April, according to Trepp.

Many apartment owners are also slipping into delinquency, unable to collect rent from unemployed tenants. The owners of offices and industrial buildings are resisting better but would suffer from a prolonged recession.

After the global financial crisis and recession, the local CMBS delinquency rate has jumped up 10.4 percent in 2013. It has declined steadily as the economy and real estate market have recovered.

Nationally, the CMBS default rate reached 7.1% in May, up from 2.2% in April, according to Trepp.

While optimism has returned to financial markets, lifting stocks from their March lows and some recent data suggests the economy is improving, uncertainty will continue to weigh on the housing market until the end of the day. discovery of a treatment or vaccine against COVID-19. Fink will not exclude that the CMBS national delinquency rate exceeds 10%.

“Retail and hospitality have already reached new heights,” he said. “I don’t see them falling anytime soon, and I see the multi-family and the office getting worse.”

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