Distress levels on commercial real estate loans continued to improve for the nation's banks in the first quarter. Levels of past due and foreclosed CRE fell more than $6 billion to a combined $78.1 billion at banks. However, pockets of weakness (or opportunities, depending on your investment perspective,) continued across the country.
The aggregate amount of foreclosed properties dropped $949 million in the first quarter. Unlike in past quarters when multifamily properties made up the largest share of the decline of REO properties, this quarter the share of construction and development properties declined the most. Banks ended the quarter with an aggregate of $841 million less in C&D properties; $105 million less in nonresidential real estate and only $2.7 million less in multifamily properties.
Read more...Bank CRE Distress Levels Improving; Profits From REO Sales in Sight - CoStar Group