CMBS Maturity Wall

The looming problem with the $90B上海千花网交友

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wave of maturing CMBS 13 percent of loans could default, S&P analyst says

5 Times Square and Scott Rechler (Credit: RXR and Getty Images)

Roughly half of the $90 billion worth of commercial mortgages left ov上海夜网

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er from the 2007 lending boom won t be easy to refinance when they mature, exposing the winners and losers of the real estate recovery.

Banks sold a record $250 billion worth of commercial mortgage-backed securities to institutional investors in 2007. That wall of maturities has been whittled down to about $90 billion as some borrowers paid off their loans early to take advantage of rock-bottom interest rates.

Morningstar Credit Ratings estimates that half of the remaining loans will have difficulty refinancing, Bloomberg News reported. And S P analysts predict that, in the best case scenario, roughly 13 percent of maturing real estate loans will default, up from 8 percent over the past two years.

“The爱上海

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re are a lot of headwinds currently with the interest-rate increase, with the new administration coming in, and also risk retention,” said S P researcher Dennis Sim. “Those three wild-card factors could also play a role in how some of the better-performin爱上海龙凤419桑拿

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g loans are able to refinance or not.”

Better-performing loans, such as those on top-quality office properties, are considered less risky.

RXR Realty is close to landing a five-year loan to pay off $1 billion in debt that comes due in March at 5 Times Square, the hea上海贵族宝贝论坛

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dquarters for Ernst Young that David Werner bought in 2014 for $1.5 billion.

“We are currently reviewing term sheets from a number of institutions and expect to settle on a lender within a week or so,” said RXR CEO Scott Rechler, whose firm acquired a 49 percent stake in the 39-story property shortly after Werner bought the building.

Retail properties and especially malls hit hard by e-commerce are expected to struggle the most. [Bloomberg] – Rich Bockmann

Tags: 5 Times Square, NYC Retail Market, RXR Realty
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