Feb
08

Commercial Real Estate Could Undergo Unprecedented Re-fis

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Lenders will likely focus on refinancing commercial real estate this year as values deflate and loans mature. Refinancing this year could triple last year’s amount, said Ross Moore, executive vice president and USA director of research at Colliers USA, Boston.

The Mortgage Bankers Association reported $16 billion in commercial mortgage-backed securities coming due this year, based on data from JP Morgan and Wachovia Capital Markets. MBA’s Research DataNote said banks and thrifts would be more likely to have shorter-term and adjustable-rate loans, while life companies would tend to have longer-term fixed-rate loans.

“There is almost certainly going to be some sort of requirement for additional equity just to get these refinances done,” Moore said. “That’s the big issue for this year.”

Early indications, however, show bank and insurance lending would remain “selective” and “sluggish” this year, and Moore said he does not expect CMBS to return this year.

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:

http://www.appraisalinstitute.org/ano/current.aspx?volume=10&numbr=3/4
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