This article discusses the impending wave of commercial real estate (CRE) debt maturities, particularly in the multifamily property sector. It highlights the challenges investors face as a significant amount of multifamily debt is set to mature, impacting the investment landscape.
The article addresses the historically significant debt maturities in the multifamily investment space, with nearly $2.7 trillion in CRE debt maturing by 2027, a substantial portion of which is associated with multifamily properties. Overleveraged investors may find their deals no longer viable, leading to potential loan defaults and foreclosures, while lenders are likely to tighten lending criteria. To mitigate the impact, investors should focus on generating cash, initiate early conversations with lenders, and reevaluate budget and rent growth projections for the next few years.
Rod provides insights into the challenges and potential solutions for investors facing the significant wave of multifamily debt maturities. You can check out the full article here.