In addition to new borrowers, ValueXpress will be assisting existing CMBS borrowers to refinance loans set to mature in 2019. Approximately 175 performing CMBS conduit loans were closed after 2010 that provided for 5- and 7-year loan terms that will be maturing in 2019. ValueXpress searched its CMBS conduit loan database to locate maturing deals in 2019 and will be contacting many of these borrowers to competitively quote CMBS conduit loan refinancing options.
“Quite a few of our existing borrowers are beginning to have their CMBS conduit loans mature,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “For example, we just closed an $8.6-million CMBS refinance of the Staybridge Suites – San Antonio/SeaWorld, which was previously a 7-year term CMBS conduit loan that was closed in 2011. In 2019, we expect to refinance 7-year term CMBS conduit loans closed in 2012 and 5-year term CMBS conduit loans that were closed in 2014.”
Despite a general increase in interest rates since the closing of these loans in 2012 and 2014, borrowers, for the most part, will not see much of a rate increase if they refinance into a 10-year term CMBS loan. The average interest rate for the 175 loans is approximately 5.30%, roughly in line with today’s 10-year CMBS conduit loan rate of 5.25-5.50%.