RCA in the commercial property press:

Billions in Commercial Real Estate Loans Coming Due in 2012

New York Times reports: The principals and lenders in the commercial property market are beginning to see billions of dollars in commercial mortgages come due as the boom days of 2007 hit the five-year mark. And while the number of maturing loans is likely to hit a new peak this year, there are fewer lenders to help refinance this debt. Banks in Europe are suffering from the debt crisis, the CMBS market is still relatively small, and insurance companies remain very conservative and selective with the properties they recapitalize.

Special servicers, banks and other lenders may be more willing to resolve troubled property situations now. The number of recapitalizations has already blown up over the past year. Real Capital Analytics has researched over $13.3 billion worth of recapitalizations in the U.S. in 2011, the most since RCA began tracking commercial property sales in 2001. European banks are also driving more deal activity by offloading some of their American loan portfolios.

But not all borrowers will struggle — some landlords can simply pay down the loans. In January, Vornado Realty Trust refinanced a $430 million loan at 350 Park Avenue with $300 million in debt and $132 million in cash. It is currently in the market to refinance the maturing $232 million loan on the Manhattan Mall in Herald Square.

Articles related to this topic:

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 Vornado Refinances 11 Penn Plaza
 Refinancing in an Interesting Market
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Posted by: Matthew Stone

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