Of the $1.4 trillion balance of outstanding commercial/multifamily mortgages held by non-bank investors, only 11 percent of the total ($155 billion) will mature in 2011, and nine percent ($125 billion) in 2012 according to the Mortgage Bankers Association's (MBA) 2010 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. The survey found that maturities vary considerably by the type of investor holding the loan.
"The long-term nature of commercial real estate means that relatively fewer—not more—commercial and multifamily mortgages have been maturing during the throes of the credit crunch and recession compared to other credit types," said Jamie Woodwell, MBA's vice president of commercial real estate research. "For most investor groups, commercial mortgage maturities are relatively spread out, with some increases starting in 2015 as the loans originated in 2005, 2006 and 2007 come due."
MBA's 2010 survey collected information directly from servicers on the maturity years of more than $1.4 trillion in outstanding non-bank commercial/multifamily mortgages. Only small shares of the commercial and multifamily mortgage debt held by life insurance companies, Fannie Mae, Freddie Mac or Federal Housing Administration (FHA), or in fixed-rate commercial mortgage-backed securities (CMBS) will be coming due in 2011 or 2012. Greater shares of mortgages held in short-term and floating-rate CMBS and by credit companies, warehouse facilities and other investors will mature in 2011 and 2012.
Based on MBA's survey, of the $1.4 trillion balance of outstanding mortgages held by non-bank investors, 11 percent of the total ($155 billion) will mature in 2011 and 9 percent ($125 billion) in 2012. Commercial/multifamily mortgage maturities vary significantly by investor group. Just 3 percent ($7 billion) of the outstanding balance of multifamily mortgages held or guaranteed by Fannie Mae, Freddie Mac, FHA and Ginnie Mae will mature in 2011. Life insurance companies will see seven percent ($17 billion) of their outstanding mortgage balances mature in 2011. Among loans held in CMBS, 12 percent will come due in 2011, including 8 percent of the $521 billion of loans in fixed-rate conduit CMBS and 22 percent of the $190 billion of loans in floating rate and large-borrower CMBS. Thirty percent ($47 billion) of commercial mortgages held by credit companies and other investors will mature in 2011.
The dollar figures reported are the unpaid principle balances as of Dec. 31, 2010. Because most loans pay down principal, the balances at the time of maturity will generally be lower than those reported here.
For more information, visit www.mortgagebankers.org.