Insurancenewsnet.com reports: With over $400 billion in commercial real estate loans maturing in 2012, borrowers are looking to refinance despite the difficult market. The CMBS market (the usual conduit for loans in years past) will probably only be good for $30-50 billion of new volume, so the question remains: Where these new loans will come from? One sector that is getting a lot of notice from lenders is retail. Dan Fasulo, managing director at Real Capital Analytics, states that the interest in retail is a “global phenomenon, as people realize that the worst is over and [these properties] have tremendous intrinsic value”. The caveat that he also provided is that this only applies to the first and second tier properties, while tertiary level properties will still struggle.Capital infusions are also another way to avoid looking for new financing while the LTV of a property is out of line. SL Green recently recapitalized a property in New York by pouring in cash and issuing shares, thus bringing down the LTV and leading to a new mortgage on the property.
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