CONCORD, CA—A significant number of CMBS loans securitized inthe 2005 to 2007 time period will be maturing through 2017. As one measure of the volume of CMBS due to mature betweennow and 2017, consider that Fitch Ratings says about one-third or35%, of its rated universe is coming due during the next threeyears.
Furthermore, some $6 billion of loans scheduled to mature nextyear are showing default. The ratings agency anticipates that manyof the peak-vintage loans face the prospect of being unable able torefinance at their respective maturity dates without additionalcapital. Furthermore, "potential higher interest rates later thisyear may put additional stress on their ability to refinance,"according to a Fitch report.
As part of this refi craze, Redwood Mortgage isfunding an increasing number of loans en route to an expected $100million capital deployment in the next 12 months. One such loan wasthe $14 million refinance of a fully leased multi-tenant retailproperty in a high-traffic shopping center in Concord, CA. The transaction helped to meet a timeline commitment of a maturingCMBS loan on the property.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
