12.31.13: Conduit Loan Maturities in 2014 Present an Opportunity

Following the maturity of approximately $375 billion of commercial loans in 2013 held by CMBS trusts, banks, insurance companies and other financial institutions, Berkadia and Trepp estimate another $350 billion is coming due in 2014 and roughly $1.4 trillion in 2014-2017. The large amount of maturing loans will keep all lending sources busy during the period.

CMBS conduit loans constitute approximately $400 billion of the 2014-2017 total, and with over two dozen firms currently contributing conduit loans to CMBS issues, the industry is poised to increase market share, to perhaps the $500-billion level.

“We are already seeing significant numbers of loans in CMBS pools that are refinancings of existing CMBS loans,” noted Michael D. Sneden, Executive Vice President at ValueXpress. “In the most recent $1.4-billion CMBS offering by Deutsche Bank, Nataxis, Cantor Fitzgerald and Liberty Island, $763.7 million (55.5%) of the loan balance was properties refinanced from prior CMBS securitizations, an impressive amount.”

“We are continuing to utilize our Trepp database to contact borrowers with maturing CMBS conduit loans as we expect refinancing of existing conduit loans into new conduit loans to be a significant portion of our business in the 2014-2017 period,” said Gary Unkel, senior loan originator at ValueXpress.

This entry was posted in CMBS, CMBS Conduit Loans, Commercial Real Estate Loans, Michael D. Sneden, News & Recent Closings, The Banker's Mortgage Conduit, Valuexpress and tagged , , , , , , . Bookmark the permalink.

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