CMBS Maturities in 2015
– by Ann Hambly
As of late 2014, it was projected that approximately 34% of the approximate $87 Billion of CMBS debt maturities in 2015 would have trouble paying off at maturity. Of the $87 Billion, $13 Billion had an LTV of greater than 100%, $7 Billion had an LTV between 90 – 100%, and another almost $10 Billion had an LTV between 80% – 90%.
The wind has been in the sails of the CMBS industry. Due to the incredibly low interest rate environment, the availability of capital for high leverage deals, and the overall competitive lending market, even some of the loans with LTVs above 80% were actually able to pay off at maturity.
As of August 2015, “only” 16% of the $87 Billion so far has had trouble paying off. This is definitely a much better outcome than originally projected. If the remainder of the year turns out like the first 7 months, there will only be about $15 Billion that wasn’t able to payoff, as opposed to the $30 Billion originally projected; or half as much as predicted.