Ten percent, or $175.9 billion, of $1.7 trillion of outstanding commercial mortgages held by non-bank lenders and investors will mature in 2017.
This represents a 4 percent decrease from the $183.3 billion that matured in 2016, according to today’s release of the Mortgage Bankers Association’s 2016 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes.
“This year marks the end of the so-called ‘wall’ of commercial and multifamily mortgage maturities stemming from the ten-year loans made in 2006 and 2007,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “As those loans have paid off and paid down, we’ve seen the amount left getting smaller, to the point that we have less in maturities this year than we did in either 2016 or 2010.”
The loan maturities vary significantly by investor group. Just $12.1 billion (2 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 2017. Life insurance companies will see $23.1 billion (5 percent) of their outstanding mortgage balances mature in 2017.
Among loans held in CMBS, $104.4 billion (20 percent) will come due in 2017. Among commercial mortgages held by credit companies and other investors, $36.3 billion (22 percent) will mature in 2017.
The dollar figures reported are the unpaid principle balances as of December 31, 2016. Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported here.
This survey covers $1.68 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 $1.2 trillion in mortgages backed by income producing properties which are not covered by this survey.