Anxiety Mounts Over Maturing Real Estate Loans

(The New York Times) Borrowers and lenders are starting to grapple with the billions of dollars in commercial real estate loans made during the boom year of 2007 that are coming due this year, in a greatly contracted economy.

Experts have warned of a rash of recapitalizations, refinancings and building sales. In New York City alone, nearly $70 billion worth of commercial mortgages that were bundled together and issued as collateral for bonds are maturing this year. Of those, $26 billion, or 37.4 percent, are five-year loans that were originated during the height of the real estate bubble, when underwriting standards were loosest, according to data from the research firm Trepp LLC.

Vornado Realty Trust is in the market to refinance the $232 million loan maturing on the Manhattan Mall. Credit: Richard Perry/The New York Times

Source: http://www.nytimes.com/2012/01/25/realesta...