Defaults Rise on Mortgages for Apartment Buildings

New York, NY, May 24, 2010--Defaults on apartment-building mortgages held by U.S. banks rose to a record 4.6 percent in the first quarter, according to a report by Real Capital Analytics Inc.

Defaults on multifamily mortgages rose from 4.4 percent in the fourth quarter and from 2.4 percent during the same period in 2009, the New York-based real estate research firm said today.

Commercial-mortgage defaults also rose in the first quarter for loans against office, retail, hotel and industrial properties, Real Capital said.