Joe Dykstra, executive vice president ofLos Angeles-based Westwood Financial Corp., has about $60 millionworth of financing before conduits at the moment. For the mostpart, these properties are not, as he puts it, "life insurancequality." Yet he is fairly certain he will get most, if not all, ofthe funding.
Over the next five years, the company will have about $600million in secured debt coming due that will require refinancing.Whether the CMBS market will absorb that, however, Dykstra doesn'thave a clue.
Since the crash, the CMBS market has proven itself willing toturn off the spigot with little notice. That happened in Q3 of 2011as Europe's sovereign debt problems became apparent and Standard& Poor's downgraded the US debt rating.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
