Industry experts expect challenges ahead for United States banks faced with refinancing the $400 billion in commercial real estate loans estimated to mature in 2017, according to Bloomberg News.  Bloomberg reports that U.S. lenders funded these loans in the years following the 2008 financial crisis, having soured on the residential mortgage market, and are secured by commercial properties such as industrial compounds, shopping centers, offices, and multi-family residential properties.  Analysts note that banks, and possibly smaller institutions in particular, will be facing increasing regulatory pressure when faced with refinancing loans that were previously funded during a time of looser underwriting standards.  This regulatory pressure could decrease property valuations and make refinancing more challenging.

Boodell & Domanskis, LLC represents lenders and borrowers in all aspects of commercial real estate financing, including work related to refinancing loans and, should that not be possible, in protecting creditors’ rights.  B&D attorneys devoted countless hours during the last financial crisis counseling lenders on how to effectively resolve a host of distressed commercial real estate loans secured by all types of collateral.  B&D attorneys are available to address any issues that could arise as these loans mature and can ably provide their counsel and experience, well informed by the last financial crisis, to assist clients facing this looming wave of maturing commercial real estate loans in the year ahead.

If you have any questions regarding issues of this nature, please do not hesitate to contact us, and in particular either Alexander Domanskis or Andrew Abrams.