As long as the Federal Reserve continues to hold down the cost of borrowed capital, the market to trade in old financing for better terms on commercial property remains hot. Nationally, here are ten notable refinance deals in commercial real estate. Some went to fixed-rate, some went to floating-rate, but all went to the closi one more time.
Fluctuations in the cost of capital serve to change the price of commercial property opportunity on a daily basis. Investors, owners, and brokers: here’s a handful of the recent refinancing deals for shopping centers culled from the national marketplace in commercial real estate
In commercial property, the only constant is change. Notes come due, loan interest rates float, property financial performance is uncertain, spreads narrow and widen, baseline assumptions go by the wayside. Sometimes, it’s just time to go get some new capital and refinance.
Owner-occupied refinance options could get a lot more forgiving, if the votes go the right way on the Hill. In a letter from NAR President Gary Thomas to Senators Mary Landrieu (D-LA) and James Risch (R-ID), NAR support for a key commercial real estate bill is spelled out. The issue addressed by the bill, S.289 “Commercial Real Estate and Economic Development Act of 2013”, is the impending maturity of $1.3 trillion in balloon mortgages. Between 2013 and 2016, a wave of maturities is headed to holders of these instruments and market options for refinance being what they are, there’s a real risk of higher loan defaults, delinquencies and business failures. The bill doesn’t create a new program for such mortgageholders. Instead, it temporarily allows commercial real estate projects to be eligible for the already-existing SBA refinance program called 504/CDC. NAR President Gary Thomas continues: