Stable Growth Anticipated For 2017 Debt Markets
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With many debt financiers having an unusually busy 2016, agency caps increasing from $31B to $36.5B and lots of potential for refinancing in the pipeline, 2017 capital markets show many signs for stable growth.
Walker & Dunlop SVP Alex Inman has been encouraged by the volume of multifamily debt forthcoming, even if a borrower must get creative with preferred equity to bridge gaps or other options.
The Mortgage Bankers Association says $208B in loans will mature in 2017. Many bridge and floating loans from 2013 are looking to lock in rates now and in the near future, Hunt Mortgage VP Colin Cross said. He sees a lot of good opportunities for borrowers there.
Of the loans coming up for refinancing next year, about $100B has some form of interest only in the initial loan and more than $60B had full-term IO. People will have challenges getting those loans refinanced, JP Morgan Securities executive director Michael Ostella said. Many will need to look to equity or mezz financing.
"We've seen a tremendous amount of discipline in the originations and buying of loans by our investors," Goldman Sachs regional director Nick Losada said. He thinks 2017 will have good opportunities, solid fundamentals and stability—although it depends on the global economy.
Here are Alex, Nick, Colin and Michael at Bisnow's Dallas Capital Markets event last week.