SPECIAL SERVICING VOLUME DECLINES

Larger special servicing loans are moving through the system. After reviewing the Trepp above, Quadrant Realty Finance?s Jason Piering it's the continual decline of loan volume (from its $2.8Bpeak in April 2010 to its current level of $2.4B) while the loan count has remained relatively flat (215 in April 2010 to 210 today). Special servicers are focusing time on the larger loans in order to lower the volume as quickly as possible with as few transactions as possible. These larger loans are either being refinanced with new debt or sold at a discount then recapitalized with new debt and equity. It'll be the same old, same old, he says, as this trend is anticipated to continue until the loan volume approaches a more normalized level. On the other hand, loan count will fluctuate around the same level as more CMBS loans mature. Loan count will begin to decline as the market continues to improve with more sources of capital such as bridge loans, mezz loans, and equity—providing more types of capital to refi stabilized and distressed maturing loans.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Dallas-Fort Worth Newsletters
Related Stories

Philly's Busy Summer Created Momentum. Can The City Turn It Into Long-Term Growth?

McKinney Approves $21M In Funding For Cannon Beach Surf Resort

Downtown Atlanta Improvement Group Picks Food Bank Chief As Next Leader

Trump's DEI Crackdown Is Creating New Risks For Landlords That Lease To The Government

Machine Investment Group Buys 490-Unit Multifamily Property In North Dallas: The DFW Deal Sheet

Brandon Johnson Seeks Second Term Amid Strained CRE Relationship

DFW Multifamily Distress Creates Opening For Investors As Development Slows

DFW's Life Sciences Sector Offers Startups The Ingredients They Need To Scale

Former CBRE Exec Suing Brokerage Giant Over Age Discrimination, Whistleblower Complaint

D.C. Investor Behind The Stacks Swaps CEO For First Time In 25 Years

Dallas Mavericks Launch Plans For New Arena-Anchored Entertainment District

CBRE IM Buys Net Lease REIT For $1.6B, Plans More Investment