Photo: Tobias Wilden / Unsplash. Illustrative stock photograph; not a property discussed in this article. Texas apartment owners are still making their payments. Many of the buildings no longer earn enough to cover them. According to new Trepp research reported by CRE Daily on Oct. 23, 130 performing floating-rate Agency apartment loans in Texas, totaling $3.04 billion, show a debt service coverage ratio below 1.0x. That is 25.3% of the performing floating-rate balance in the state. The balance-weighted average coverage…
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A Quarter of Texas’s Floating-Rate Apartment Loans Don’t Earn Enough to Pay the Mortgage. Most Are Still Current.
Trepp research finds 25.3% of performing Texas floating-rate Agency apartment balances below 1.0x coverage. Most remain current despite cash-flow pressure.
