Already have a commercial real estate loan—but looking to refinance with a better rate and terms? From our location in Kansas City, MidCap has the industry contacts necessary to survey the market for the very best commercial real estate refinancing opportunities available for your specific property.
With an estimated $1.4 trillion in commercial real estate loans due to mature between 2014 and 2017, lenders and investors may be in for a flood of refinancing that could present new challenges for the market. The challenge level will depend on many factors, including property type and location. Fortunately, in the Kansas City and surrounding Midwest areas, these challenges should present less of a problem than on the coasts where property values fluctuate more significantly. Regarding property type, retail borrowers facing refinancing in the next few years may face the greatest uphill battle, with loan-to-value ratios for loans maturing between 2014 and 2017 consistently higher than those of recently originated retail commercial real estate loans.
Industrial borrowers too may begin to face their biggest refinancing problems come 2016. This commercial real estate asset class will likely hit its peak loan-to-value ratios in 2016, making it harder for them to refinance. Once again, Kansas City and the surrounding areas will likely see less of a problem given steadier value over time and a burgeoning industrial commercial real estate market due to its central location.
Here at MidCap, tackling a challenge head-on is something we look forward to. If you find yourself facing a refinancing of your commercial real estate loan that is sure to be difficult, please call and let us advise you as to your options.