Nearly 20% of outstanding debt on US commercial and multifamily real estate — $929 billion — will mature this year, requiring refinancing or property sales, Bloomberg News reported. The volume of loans coming due swelled 40% from an earlier estimate by the Mortgage Bankers Association of $659 billion, a surge attributed to loan extensions and other delays rather than new transactions. With the Federal Reserve signaling that it’s done hiking interest rates, it’s likely more deals will get done this year, according to Jamie Woodwell, head of commercial real estate research at the bankers group. “Volatility and uncertainty around interest rates, a lack of clarity on property values and questions about some property fundamentals have suppressed sales and financing transactions,” Woodwell said in a statement Monday. “This year’s maturities, coupled with greater clarity in those and other areas, should begin to break the logjam in the markets.” About $4.7 trillion of debt from all sources is backed by U.S. commercial real estate, ratcheting up concern among regulators and investors as building values slide. Increasing defaults and write-downs have hit lenders such as New York Community Bancorp, KKR & Co.’s commercial mortgage real estate investment trust and holders of commercial mortgage-backed securities. Read more.
ABI will be presenting a program that will address CRE exposure: the 2024 Distressed Real Estate Symposium, to be held April 30-May 2 in Ojai, Calif. Details and registration information will be posted soon at abi.org/events.
