According to MSCI Real Capital Analytics (RCA), caution is warranted for the coming U.S. CRE Refinancing wave. Utilizing their own Mortgage Intelligence Database, MSCI identified $2.77 trillion in loans maturing over the next 12 months. Of this total:- “The price of 81.5% of loan collateral dropped in the last 12 months, but only 40% is estimated to have decreased in value since origination, thanks to price growth over loans lifespan prior to recent corrections.”
- “44.3% encountered price corrections that potentially pushed their current LTVs into the danger zone (over 60% LTV) where refinancing appetite might be restricted.”
- “Among this subgroup, 58% face loan maturities within the next five (5) years and 37% within three (3) years, warranting particular attention and monitoring.”
An aggressive rate hiking campaign and simultaneous drawdown of cash from the U.S. Federal Reserve’s Balance Sheet has caused a notable decline in the availability of debt financing.
Compass Commercial Mortgage, Inc., specializes in the placement of commercial real estate loans. With over 60 years of combined experience, Randy Rienas and Matt Hochradel have built strong relationships with a diverse pool of well-capitalized lenders competitive in today’s marketplace.
Don’t navigate this difficult marketplace on your own. On average, our clients secure lower interest rates (0.25-0.50%), and more advantageous loan terms (loan covenants, prepayment penalties, etc.) than they would on their own.