Roughly $22.5 billion worth of commercial mortgages are set to mature over the next 12 months and will need to be rolled over, according to a new report from Fitch Ratings. In total, 22,000 loans will be affected.
A majority of the loans – including notes on hotel, office and retail properties -- will come due in the latter half of 2011.
Analysts at the firm estimate that $16 billion of these credits, or 70%, will pass the refinance test and be renewed.
According to Fitch, $4.5 billion in commercial mortgages will mature this quarter with $4.9 billion coming due in 2Q. (About $12.9 billion will mature in the second-half.)
"Borrowers of maturing five-year interest-only loans will need to contribute additional equity to reduce debt levels." said Adam Fox, a senior director at Fitch. "Five-year loans will face more difficulty in refinancing, especially office loans with significant upcoming lease rollover."
The rating agency says more than half of the mortgages ($12 billion) were originated between 2005 and 2007, when real estate values boomed.
