The commercial mortgage-backed securities multifamily loan issues in New York aren’t subsiding anytime soon.
In a series of CMBS Newsflashes throughout August, Morningstar Credit highlighted problems at multiple properties in the Big Apple, while issues mounted in other areas of the country as well.
A new appraisal dropped the value of the JPMCC 2021-NYAH portfolio in New York City to $447.2 million, 11% lower than the 2025 value and 38% lower than the at-issuance value of $716.9 million, according to an Aug. 21 Morningstar report. Bloomberg recently reported that New York City’s rent freeze could make the situation worse for owner A&E Real Estate. The firm didn’t reply to Multifamily Dive’s request for comment.
“The NYAH Portfolio has been decent on the revenue side but expenses have increased and uncertainty with what the mayoral administration may do with rent control laws makes a workout difficult to project,” David Putro, associate managing director at Morningstar Credit, told Multifamily Dive in emailed comments.
In a second New York City portfolio, a new appraisal dropped the value of two-property Parkhill City portfolio in Queens by 35% from its 2024 appraisal to $178.6 million, according to an Aug. 18 Morningstar report. At loan issuance, the properties were valued at $322.5 million, and the loan has been in servicing since February 2023 after falling behind on payments.
“A receiver has been in place since 2025; it's been working to get the property qualified for the 421a tax abatement program,” Morningstar said in the report. “The servicer is pursuing foreclosure with a ruling anticipated by the end of 2026.”
The Frontier, a 91-unit property in the Murray Hill neighborhood of Manhattan, received better news after its loan was extended to March 2029, according to an Aug. 14 Morningstar report. At year-end 2025, the property was reported as 98% occupied. The property moved to special servicing after missing its March 2026 maturity date on its $44.1 million loan.
“The Frontier got extended and cash flow seems to be on the rebound—it cratered during the pandemic, but 2025 was its best year in terms of net cash flow, just needs a bit more to get to a refinanceable level,” Putro said.
Other problem loans
New York City wasn’t the only metro where apartments with CMBS loans continued to run into issues.
In Cincinnati, King's View transferred to special servicing after the borrowing entity failed to name a replacement guarantor, according to an Aug. 5 Morningstar report. However, the property’s 2.11x debt service coverage ratio leaves “little to worry about,” according to Morningstar.
“But it's worth noting that there was a contractual grace period to name a replacement that has come and gone, and the servicer has ordered BOVs [broker opinions of value], so the workout process may take a bit longer than it would seem at first glance,” Morningstar wrote.
Also on Aug. 5, Morningstar reported that Green Tree Villas in Memphis, Tennessee, moved to special servicing after the property was rated “unacceptable” during a site inspection. At year-end 2025, the servicer reported 97% occupancy and 1.70x DSCR.
“Servicer commentary further states there was visible ‘deterioration of property and neglect,’ with multiple buildings down and boarded up and no information from the borrower on cause, insurance claims, or what is being done to resolve it,” Morningstar wrote.
In Philadelphia's Kensington neighborhood, a forbearance agreement has been signed for the eight-building GM Holdings Portfolio, according to an Aug. 4 Morningstar report. The apartments went into special servicing in April 2026 after a series of missed payments.
“The forbearance allows a receiver to be put in place,” Morningstar wrote. “While the borrower previously proposed bringing the loan current and agreeing to cash management, neither has come to fruition and the borrower is currently marketing the portfolio for sale.”
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