3 Alabama and Georgia properties head to servicing

Core Insights - The Tusk Multifamily Portfolio, consisting of three apartment properties in Alabama and Georgia, has entered special servicing due to delinquency and default on a $33 million loan originated in November 2023 [3][5]. Group 1: Loan and Property Details - The loan backing the properties had a debt service coverage ratio (DSCR) of 1.14x at the end of 2025, down from 1.25x at underwriting [3]. - The properties in the Tusk Multifamily Portfolio include Magnolia Manor (122 units in Birmingham, Alabama), The Residence at Patriot Place (257 units in Columbus, Georgia), and The Retreat at Ragan Park (144 units in Macon, Georgia), built between 1970 and 1987 and renovated in 2023 [4]. Group 2: Occupancy and Damage Insights - Occupancy at the three properties was reported at 84% at the end of 2024 [5]. - A fire incident at one of the properties in late 2024 contributed to the delinquency, although the damage was limited based on the repair funds reserved [5]. Group 3: Market Trends - The multifamily special servicing rate increased by 12 basis points to 8.32% in October, compared to 6.21% a year prior [7]. - The Trepp CMBS Special Servicing rate for commercial real estate reached a record high of 10.84% in October, rising by 19 basis points [7]. - As distress in the market rises, investment firms like Broad Creek Capital are identifying buying opportunities, with a focus on problem properties [8].