Repositionings, CMBS Maturities are Loan Drivers

Hookston Square is a two-building suburban office campus.

SAN MATEO, CA—There is a still-growing market demand for commercial real estate refinancing as owners move to capture a property’s greater potential in its local market, says private lender Redwood Mortgage. Another big driver for 2017 is CMBS loan maturities, which were expected to hit $6.7 billion in March alone and $108 billion for the year, according to Trepp LLC.

“Any time there’s a loan event or change affecting the property, many owners also look at how they can make property improvements, raise the tenant profile or increase rents so they can negotiate even better long-term financing,” said Steve Belleville, director of sales and marketing for Redwood Mortgage, tells GlobeSt.com. “One of our more popular loan programs is a short-term commercial bridge-loan refinance, whereby the owner takes our no-prepay-penalty loan to improve the real estate and the tenancy, then goes back to their traditional financing partner for better rates and a longer term.”