| 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. |
SPECIAL SERVICING VOLUME DECLINES
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Jason Piering
, Quadrant Realty Finance
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