The Brentmoor Apartments, located at 2080 Brentmoor Drive just outside the Beltline, sold for $45.6 million after the former owner, Silver Point Group, defaulted on the loan. St. Clair Holdings was the buyer. The Triangle Business Journal reports the company specializes in value-add real estate projects in the Southeast and Southwest.

Silver Point Group borrowed $45.6 million from an affiliate of Berkshire Residential in late 2021 to purchase the apartment complex for $52 million in early 2022.

The deed states that the borrower is in default as it “failed to pay the note as and when due” and that the default has continued. As of April 2024, Silver Point Group owed an outstanding balance of more than $48.7 million.

Brentmoor Apartments features one-, two- and three-bedroom units in 3-story buildings with rent starting at $999 a month. The units range from 735 to 1,240 square feet. Amenities include a swimming pool, grilling stations, fire pit, sauna, dog park, fitness center and more.

Fitch Ratings said its overall U.S. CMBS delinquency rate increased nine basis points to 2.42% in May from 2.33% in April 2024 due to maturity defaults of several large regional mall and office loans. Led by the $255-million maturity default of a loan backed by a 980,711-square-foot portion of Providence Place Mall (pictured) in Providence, RI, the retail and office delinquency rates increased by 32 bps and 26 bps, respectively, last month. 
 
New 60-day-plus delinquency volume totaled $1.32 billion in May compared with $1.49 billion in April, Fitch said. Office loans accounted for the largest share of new delinquencies (44%; $588 million), followed by retail (41%, $536 million) and hotel (11%, $139 million). Maturity defaults accounted for 77% ($1.02 billion) of new delinquencies, while term defaults represented 23% ($305 million). 
 
Resolution volume increased to $771 million in May from $569 million in April, according to Fitch. May resolutions included $616 million of loans brought current, $24 million of loan liquidations and $131 million of loans previously 60+ days delinquent removed from Fitch’s index that are now 30 days delinquent.  

Using a different yardstick from Fitch, Trepp reported that the CMBS delinquency declined by 10 bps to reach 4.97% as May ended. The improvement was driven by about $2 billion of office loan resolutions during the month. Year-over-year, though, delinquencies in May were higher compared to 3.23% in May 2023, according to Trepp data.