Extend-And-Pretend Created A New Wave Of Loan Maturities
The tactic didn’t eliminate interest rate pressure for many borrowers.
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The tactic didn’t eliminate interest rate pressure for many borrowers.
Investment conditions are improving for this asset class.
The announcement to close 1,200 stores over the next three years, including 500 in 2025, has sent its stock plummeting to less than half its value at the start of the year.
Loan modifications have surged in 2024, setting the stage for a record year in terms of total modifications.
With $5.9 trillion in commercial real estate debt currently outstanding, more than half of that total is set to mature within the next three years.
The major trouble is with single asset, single borrower structured loans.
Florida reported 70 commercial foreclosures, a 21% increase from August and 48% higher than in September 2023.
Osborne emphasized the importance of acquiring prime single-tenant properties on major thoroughfares, especially with pending legislation favoring such investments.
The question is, by how much will they fall?
Whether properties have unrealized gains or losses depends on when loans originated.
Broker/President Ronald W. Osborne represents both buyers and sellers of commercial properties of all asset classes and types, focusing primarily on privately owned properties in South Florida, ranging in value from $1 to $10 million.
Sperry – RJ Realty
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954.381.0412
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