When it comes to the commercial-mortgage bond market these days, location is everything.
From Webster, Texas to Providence, Rhode Island, borrowers in the U.S. are coming up short, unable to get new loans as about $59 billion in mortgages packaged into bonds comes due in 2012, according to data compiled by Bloomberg. In contrast, $930 million has been refinanced on two New York skyscrapers in the past month: Vornado Realty Trust’s Park Avenue tower and Sheldon Solow’s 9 West 57th Street, home to Chanel SA and KKR & Co.
Late payments on loans packaged into bonds are at 8.95 percent in December, down from 9 percent in November, according to an S&P report. The rating company forecasts delinquencies will rise to between 9.5 percent and 10 percent in 2012.