Not surprisingly, mortgages on retail and lodging properties were hit the hardest in the economic fallout of the coronavirus. Agency multifamily MBS issuance rose significantly in the second quarter. (Includes data chart.)
The net asset value of the Blackstone Real Estate Income Fund dropped by 24% to $443 million as of March 31 from $584 million at the beginning of the year.
The $413.3 million commercial MBS backed by a portfolio of hotels was originally announced in February but postponed due to market volatility caused by the coronavirus pandemic.
Arbor Realty Trust issued a $727.2 million non-agency multifamily MBS. For the most part, these deals are uncommon because the GSEs dominate the market.
The fight between WeWork and its tenants has cast doubt on the company’s ability to pay rent, which in turn will impact billions of dollars in commercial MBS.