Woodwell explained that such extensions and modifications had allowed the CRE mortgages to mature from $659 billion to $929 billion. He added that commercial mortgages had the tendency to be long-lived with maturities spreading out over several years.
“Volatility and uncertainty around interest rates, a lack of clarity on property values, and questions about some property fundamentals have suppressed sales and financing transactions. This year’s maturities, coupled with greater clarity in those and other areas, should begin to break the logjam in the markets,” he said.
Loan maturities typically varied depending on investor and property type groups, with Fannie Mae, Freddie Mac, FHA, and Ginnie Mae having $28 billion in outstanding balance of multifamily and health care mortgages.
Based on property type, about 12% of mortgages that are backed by multifamily properties will be maturing in 2024 while the number is 17% for those backed by retail and 18% for healthcare properties. Loans backed by office properties will see 25% mature in 2024 while the number is 27% for industrial loans and 38% for hotel or motel loans.
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Source: mpamag.com