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Eight percent, or $121 billion of $1.5 trillion, of outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2015, a 32 percent increase from the $91.7 billion that matured in 2014, according to the Mortgage Bankers Association’s 2014 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. Maturities will grow to $223 billion in 2016.
Loan maturities vary significantly by investor group. Just $11.5 billion (three percent) of the outstanding balance of multifamily and health care mortgages held or guaranteed by Fannie Mae, Freddie Mac, FHA and Ginnie Mae will mature in 2015. Life insurance companies will see $19.4 billion (six percent) of their outstanding mortgage balances mature in 2015. Among loans held in CMBS, $73 billion (12 percent) will come due in 2015. Among commercial mortgages held by credit companies and other investors, $17.1 billion (12 percent) will mature in 2015.
“After hitting a low last year, commercial and multifamily mortgage maturities are beginning to rise as the 10-year loans made in 2005, 2006 and 2007 come due,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research. “With strong market conditions, many of the loans slated to mature in coming years are already refinancing. Over the last year, the balance of loans set to mature in 2015 fell by $37 billion, or 24 percent.”
The dollar figures reported are the unpaid principle balances as of Dec. 31, 2014. Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported here. This survey covers $1.54 trillion of commercial and multifamily mortgages held or insured by life companies, Fannie Mae, Freddie Mac, FHA, CMBS trusts and other non-bank lenders and investors. Banks and thrifts hold an additional $944 billion in mortgages backed by income producing properties which are not covered by this survey.