by Wolf Richter
Wolf Street
“Physical occupancy” rate (tenants living in the apartment) v. “economic occupancy” rate (tenants actually paying rent).
A $481-million loan that had been securitized into a Commercial Mortgage Backed Security (CMBS) in July 2019 by JPMorgan Chase and is backed by 43 apartment buildings with 8,671 apartment units in 25 metros, spread over the Midwest and Southeast, has already been put on the servicer’s watchlist, according to Trepp, which tracks and analyzes CMBS.
The comments of the servicer, KeyBank National Association, on why it put the loan on its watchlist are a sign of our times when eviction bans and work-from-anywhere have changed the equation for owners of apartment buildings.