Overview
Daniel Martin discussed the refinancing of commercial mortgage-backed securities (CMBS) that originated 10-plus years ago at a loan-to-value of 75 to 80 percent. “For properties that have appreciated significantly, whose tenants are still credit-worthy, a loan to value ratio of 60 percent may be sufficient to refinance existing indebtedness. For others, it will be a challenge to refinance,” Mr. Martin said, adding that private equity funds and traditional developers may fill some of the void.