Comm R.E. Investors Will Have Trouble Refinancing as Loans Mature

[Corey Dutton]

According to a recent article in ‘National Real Estate Investor,’ many commercial real estate investors will have difficulty refinancing their maturing loans. For those loans written between 2005 and 2007, many of these loans will be maturing now, or in the next couple of years. While U.S. banks try to comply with stringent banking standards effective in January of 2013, most of them won’t be reissuing new commercial debt. Particularly on assets that have lost value since these loans were written.

For this reason, commercial real estate investors must seek alternatives now for these maturing loans. Bridge loans, offered by private money, non-bank lenders is a viable alternative. For those who have never gone in the direction of private money, bridge financing they may have no other choice. With a huge amount of CMBS maturing now through 2015, it will be trying time for those with assets whose values have tumbled.

To read the entire article in NREI, click here: http://nreionline.com/commentary/theres-avalanche-cmbs-loans-maturing
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