Prospects Dim for Take-Out Financing on 2012 Loan Maturities - CoStar Group

Next year could be pivotal for CMBS credit performance as a huge wave of loans is scheduled to mature in 2012. The timing is such that, given the current constrained capital markets, it could mean a huge wave of opportunities for distressed asset investors.

Over the next 12 months, CoStar is expecting $100 billion in loans pooled in commercial mortgage backed securities to mature. Of that amount, $70 billion is coming due for the first time, and another $30 billion in loans is delinquent but rolling on a monthly basis past their maturity date.

"With scheduled maturities of $100 billion in 2012 at a total average loan-to-value of 94.1%, we can expect more modification/liquidation decisions made by servicers," said Pooja Sharma, senior debt analyst for CoStar Group. "As the cycle progresses, we expect more of these loans to be resolved via liquidations or recapitalization modifications. So distress investors should continue to keep their eye on the ball; opportunities will increase."

Read more...Prospects Dim for Take-Out Financing on 2012 Loan Maturities - CoStar Group