Regardless of whether the assets go into special servicing, the sheer volume of debt coming due over the next five years or so is likely more than the current supplies of debt and equity are able—or willing—to take on. That bodes well for players in the mezzanine and preferred equity arena: “rescue capital” will have many opportunities to come to the rescue over the next few years, said locally based experts Thursday at the Urban Land Institute’s Real Estate Finance and Investment conference here.
The reasons are numerous. With a “tremendous number” of maturities happening over the next three to five years, including $232 billion in CMBS originated in 2007 alone, it’s not clear what the state of the economy and the capital markets will be during that time, pointed out moderator Robert Ivanhoe, global chair of the real estate practice for law firm Greenberg Traurig.
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