Get ready for cascading defaults as commercial real estate being run into the ground. The trend of walking away from commercial mortgages is just beginning.

by Simian_Stacker

lololololol pic.twitter.com/9eHXg1CN6v

— KKGB Kitty (@INArteCarloDoss) June 6, 2023

Banks Cutting Losses on Distressed Office Loans 

Earlier this year, RXR dropped a bomb on New York commercial real estate.

CEO Scott Rechler signaled that his firm might hand lenders back the keys of two office towers that he likened to film cameras in a digital world.

The Wall Street Journal reports Interest-Only Loans Helped Commercial Property Boom.

Now They’re Coming Due.

Interest-only loans as a share of new commercial mortgage-backed securities issuance increased to 88% in 2021, up from 51% in 2013, according to Trepp. Nearly $1.5 trillion in commercial mortgages are coming due over the next three years.

83 Percent on Securitized Office Loans in Trouble

The 1,921 Room Hilton Union Square Hotel in San Francisco Was Just Abandoned

Court orders sale of Stateview Homes assets (Canada’s insane BoC-blown housing bubble is imploding, and the contagion is going to take down lenders holding the bag on all those CRE & residential mortgages)

An Ontario court has ordered the sale of land assets held by Stateview Homes as part of a rolling insolvency process following the collapse of the company’s home-building business that has put hundreds of purchaser contracts at risk of cancellation.

On Monday Justice Michael A. Penny agreed that the sale of seven Stateview housing projects or phases would go ahead immediately in an effort to raise money for lenders who are collectively owed $349-million.