Overview
Daniel Martin said that tighter financial market regulations have made it more difficult and more expensive to refinance CMBS loans. “Whereas loans originated more than 10 years ago may have carried 75% or 80% loan to value, it’s much harder to borrow that much today,” Mr. Martin said, adding that while a loan to value ratio of 60% may be sufficient to refinance existing indebtedness on prime properties, “for others, it will be a challenge to refinance.”