Wave of debt maturity presents opportunity to untraditional lenders

TRD New York /
Jun.June 08, 2012 11:00 AM

The immense volume of debt due to mature over the next five years presents an exciting opportunity for mezzanine funds and preferred equity lenders, which will be able to swoop in and provide “rescue capital” to flailing borrowers in the absence of interest from traditional banks, according to GlobeStreet.com.

While banks have been lending more willingly than they had during the depths of the recession, their attitude towards maturing debt will likely depend on the financial strength of a given building’s sponsor.

That leaves the door open for private equity funds, which have already raised close to $160 billion in funds to take advantage of the tremendous amount of debt maturity opportunities, GlobeStreet.com said. At least $232 billion in commercial mortgage backed securities originated in 2007 is expected to mature in the next few years.

In New York, refinancing has already begun. The $113 million refinancing of William Beaver House at 15 William Street in Lower Manhattan, which was arranged by Cassidy Turley on behalf of CIM Group, came from an unlikely source — an insurance giant.

“It’s an opaque market,” said Yon Cho, principal of real estate finance and investment firm PCCP. “You don’t really know who’s going to step up at what time.” [GlobeSt.com]


Related Articles

arrow_forward_ios
According to the report, purchase applications are down while refinancing is up (iStock)

Applications for mortgages to buy homes drop

Applications for mortgages to buy homes drop
Darren King (Credit: iStock)

Multifamily lender saw delinquent loans double in Q1

Multifamily lender saw delinquent loans double in Q1
Ira Zlotowiz, Founder & President of Eastern Union; Simon Ziff, president of Ackman-Ziff; Dustin Stolly, Vice Chairman, Co-Head of Capital Markets Debt and Structured Finance and Newmark Knight Frank

Tune in for the latest in commercial lending on tonight’s TRD Talks Live

Tune in for the latest in commercial lending on tonight’s TRD Talks Live
Heavy machinery left on the street after construction halts in order to comply with CDC guidelines due to the COVID19 outbreak. (Photo by Erik McGregor/LightRocket via Getty Images)

New York’s construction ban puts some lenders at higher risk

New York’s construction ban puts some lenders at higher risk
Coronavirus chaos is driving lenders to safe, stable projects such as 445 West 35th Street (Credit: iStock and Google Maps)

Coronavirus chaos driving lenders to safer projects amid low interest rates

Coronavirus chaos driving lenders to safer projects amid low interest rates
From left: Will Anderson and Etienne Uzac with California and New York skylines (Credit: LinkedIn)

Ex-media chiefs admit to buying NY, Cali real estate with stolen millions from lenders

Ex-media chiefs admit to buying NY, Cali real estate with stolen millions from lenders
“No one should be lending for 30 years in most of Florida,” financial climate analyst warns

“No one should be lending for 30 years in most of Florida,” financial climate analyst warns

“No one should be lending for 30 years in most of Florida,” financial climate analyst warns
Battle of the banks: These were NYC’s most active luxury home lenders in 2018

Battle of the banks: These were NYC’s most active luxury home lenders in 2018

Battle of the banks: These were NYC’s most active luxury home lenders in 2018
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...