Trepp: two borrowers account for 89% of delinquent SASB multifamily debt

Two borrowers account for $1.00 billion of the $1.13 billion of delinquent single-asset, single-borrower multifamily loans, or 89.0% of the total, according to Trepp research published Oct. 19.

The delinquent $1.13 billion sits inside a $28.44 billion SASB multifamily balance, a 3.96% rate. Six of the 83 SASB multifamily loans in the five states are delinquent; without the two sponsors' loans, Trepp calculates the rate would be 0.45%.

Sponsor A's $600.0 million, or 53.2% of the delinquent balance, comes from three loans secured by a single portfolio of 31 New York City properties, held in JPMCC 2021-NYAH and JPMCC 2021-NYAH MZ.

The two senior notes matured in June 2024 and transferred to special servicing that October for maturity default. Trepp lists modification as the workout strategy.

Sponsor B's two loans add $403.7 million, or 35.8%.

Parkhill City, a $225.0 million loan in PKHL 2021-MF, is secured by two properties with 538 units in Jamaica, Queens; it moved to special servicing in February 2023 for payment default, and a receiver took control in July 2025.

The MFP Portfolio, a $178.7 million loan in JPMCC 2019-MFP, was originally $384.8 million across 43 properties. It transferred to special servicing in July 2022 after a maturity default, and its remaining six properties sold at an August 2026 auction, subject to court approval.

The sixth delinquent loan, $123.5 million, accounts for 11.0% and has a different sponsor: a Parkmerced note in MRCD 2019-PARK secured by a 3,221-unit San Francisco property, in special servicing since March 2024 and in foreclosure.

Trepp's separate read on CRE CLO multifamily loans securitized in 2021 and 2022 puts them at 12.2% of CRE CLO multifamily balance in the five largest securitized multifamily states and 80.2% of its delinquent balance.

The loans are floating-rate with a median coupon of 7.16%, and median DSCR based on net cash flow has fallen to 0.64x from 1.60x at securitization.

A 0.64x ratio means net cash flow covers less than two-thirds of debt service. Trepp cautions that the delinquency rate does not capture the full extent of debt-service pressure among loans that are still performing.