The value of commercial real estate (CRE) loans increased in July, according to a recent report.
The aggregate value of CRE loans priced by Boston-based DebtX that collateralize Commercial Mortgage-Based Securities (CMBS) increased to 79.4 percent as of July 30, up from 77.4 percent as of June 30. Loan values were 71.1 percent as of July 31, 2009, according to a statement.
"Despite weak CRE fundamentals and increasing levels of delinquencies and defaults, 90 percent of CMBS loans are still performing," said DebtX CEO Kingsley Greenland. "The outlook for CRE loans that collateralize CMBS continues to improve due to increased activity in the CMBS new issue market and strong demand for distressed CRE loans in the secondary market. Investors have become more comfortable that loan valuations have stabilized and are looking to achieve better risk-adjusted yields."
In July, DebtX priced 57,801 CRE loans with a $679.5 billion aggregate principal balance.





