Multifamily Mortgage Distress & Workout Analyzer

As highlighted by WSJ's investigation into 2021 multifamily floating-rate debt pools reaching 53%+ delinquency, examine rate-cap cliff expirations, stressed DSCR deficits, debt yield thresholds, and workout recapitalizations across Sunbelt and national apartment loans.

Delinquency Rate 53.2% 3 of 5 loans < 1.00x DSCR
Total Pool Balance $214.5M 1,480 total apartment units
Weighted Stressed DSCR 0.86x Original 2021 was 1.95x
Total Refinance Gap $58.2M Equity check needed to refi
Property Asset Units Loan Bal Stressed Rate Stressed NOI DSCR Debt Yield Stressed LTV Status
Click any loan row above to inspect detailed workout math, recapitalization equity checks, and discount-to-basis metrics below.

Veridian Terraces (Dallas, TX)

340 Units • 2021 Bridge Origination • SOFR + 3.25%
Imminent Default
Current Stressed Debt Service
$4.15M / yr
8.55% interest rate
Stressed Net Operating Income
$3.06M / yr
-10% vs $3.40M underwritten
Annual Cash Deficit
-$1.09M / yr
Sponsor out-of-pocket shortfall
Implied Property Value
$48.96M
@ 6.25% exit cap (orig: $89.5M)
Max New Agency Refi Loan
$34.97M
Capped at 8.75% Debt Yield
Sponsor Refi Equity Hole
$13.53M
$39,794 / unit cash injection required
Ready: 5 loans loaded. Adjust sliders to model distress scenarios.
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Why the 2021 Vintage is Cracking

Between late 2020 and 2021, private syndicators acquired Sunbelt multifamily assets using floating-rate bridge loans pegged to near-zero SOFR/LIBOR at 3.50% cap rates. As SOFR surged by 500+ bps and original two-year rate caps expired, annual debt service tripled while rental rate growth plateaued or turned negative from new supply.

The Debt Yield Refinance Cliff

Permanent agency lenders (Fannie Mae, Freddie Mac, HUD) require minimum debt yields typically between 8.5% and 9.5% (NOI divided by new loan balance). If an apartment complex produces $1.8M NOI, the maximum loan it qualifies for at an 8.75% debt yield is $20.5M—leaving a massive capital shortfall against a $30M maturing bridge note.

CLO Tranche Attachments & Bargain Hunters

CRE CLO securitizations package these bridge loans. If pool delinquency tops 50% and liquidated property haircuts exceed 20%, subordinate BB and mezzanine tranches suffer full principal write-downs. Distressed debt investors target these non-performing loans at 60–75 cents on the dollar to acquire physical apartment keys at below replacement cost.

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