Victor’s Insider Scoop on Commercial Real Estate Financing in 2011 …
January 1st, 2011 | top of page
This month my newsletter articles begin with 15 stories on the state of commercial real estate financing in 2011. The numbers vary depending on the quoting source but here are some of the highlights I gleaned from the articles:
1. There’s $1.5 trillion ($1500 billion = $1,500,000,000,000) of commercial real estate loans that will mature between now and 2014 that, under current market conditions, have little hope of getting refinanced.
2. Of the $200 billion maturing in 2011, $48.8 billion are CMBS loans. 12.5% of those CMBS loans are currently in special servicing. Surprisingly, half of the loans in special servicing are current on their payments.
3. Lenders are (slowly) moving away from Extend and Pretend.
4. CMBS loan originations are making a comeback but are well off the record highs of 2005 to 2007.
5. If your property will need a loan modification start early to build a better relationship with your lender.
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PS – If you are ready to begin to thrive again by getting off the sidelines and putting your money to work give me a call at 602-320-6200. I see lots of deals and may have just what you are looking for.