$35B Of Securitized Debt On Multifamily Properties Scheduled To Mature In 2023

About $35B in debt secured by multifamily assets is scheduled to mature this year, according to CRED iQ's 2023 CRE Maturity Outlook, out of a total of about $162B by all property types.

The volume of scheduled maturities over the next 12 months will be the largest over the next 10 years, the report said.

The debt, all of which has a maturity date sometime in 2023, includes loans in CMBS conduits, single-borrower large-loan securitizations, collateralized loan obligations, or CLOs, and multifamily mortgages securitized by Fannie Mae and Freddie Mac.

At over $10B, single-borrower large-loan multifamily debts constitute the highest outstanding balance in loans associated with that property type, though those have a relatively high probability of being extended, CRED iQ reports.

Freddie Mac securitizations account for the second-highest outstanding balance at about $7.7B, and next are about $7.5B in multifamily loans securitized in CLOs scheduled to mature in 2023. About $7.3B in Fannie Mae securitizations are due this year, along with roughly $2B in loans in CMBS conduits.

“Many multifamily loans securitized in CRE CLO vehicles are secured by transitional apartment properties moving up in building class through value-add initiatives,” the report notes.

“Although many of these loans have floating rates, the idea of locking in fixed-rate financing after completion of value adds may be an optimal completion of properties’ business plans.”

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