The distress rate on apartment loans with CMBS financing has increased 185% year to date, according to CRED iQ. Loans in the multifamily sector began 2024 with a 2.6% distress rate—a composite of the special servicing and delinquency rates—and now stand at 7.4%.  

Although the monthly increase between May and June was a modest three basis points, apartment loans are now vying with those in lodging sector for third place, CRED iQ reported. 

The retail and office sectors are nearly neck-and-neck for the highest distress rates, notching 11.7% and 11.5%, respectively. Both sectors saw modest increases of four bps compared to the previous month.  

Hotels retained third place with an 8.1% distress rate, after logging the best month-over-month improvement of the group, with a 130-bp decline in distress. Industrial and self-storage continued operating at sub-1% in all but one of the past 7 months.    

The overall CRED iQ distress rate added 13 bps in June to 8.62%, nearly identical to May’s increase. The June rate a fourth straight record high. CRED iQ’s special servicing rate remained mostly flat at 8.08% while the CRED iQ delinquency rate gained 48 basis points to 6.28%. 

Atrium Health is installing equipment into its new hospital in Cornelius and expects to begin accepting patients summer of 2025. Atrium Health Lake Norman will include an intensive care unit, operating rooms, a full-time emergency department and maternity services, among other operations.

Atrium Health Lake Norman’s first phase will include the 38-bed, 170,000-square-foot hospital and a 72,000-square-foot medical office building. The hospital will employ over 282 people. The Charlotte Business Journal reports the $255 million project is expected to be followed by surrounding mixed-use development.

The hospital is being built on around 36 acres of the nearly 100 acres the company owns at Westmoreland Road and US Highway 21. Atrium will work with development partners for a mix of uses on the rest of the site.

The Charlotte healthcare provider is planning an eventual second phase there with another medical office building and an additional hospital wing as well.

The largest economic development project in Georgia’s history will open sooner than anticipated. The official production start for Hyundai Motor Group Metaplant America near Savannah is scheduled for the fourth quarter of 2024 instead of the previously projected start in the first half of 2025.

The plant will be the first EV mass-production plant for Hyundai and will produce Hyundai, Genesis and Kia cars. Hyundai’s investment for the Metaplant is about $7.59 billion and will create 8,500 jobs. LG Energy Solution is the partner that will create the battery components.

This plant has also attracted multiple suppliers to Georgia, such as car part and frame manufacturer Hwashin and Daechang Seat Corp. Outside of Hyundai, the state will also be home to Rivian Automotive Inc.’s plant in Stanton Springs, which will create about 7,500 jobs.