It’s unlikely that Blondie was referring to real estate investors in her 1980 anthem “The Tide is High,” but for many real estate investors that are struggling to refinance loans in a higher rate environment, the water is awfully high.
According to Trepp, LLC, a New York based data analytics firm, there are $300 billion of Freddie Mac and CMBS loans (Collateralized Mortgage Backed Securities) coming due in the next 24 months. Of those, 42% would be cash-in refinances and of the 42%, half would require cash in of more than 25% of the loan balance.
Familiar properties to many both in and out of real estate are struggling with values that have fallen and rates that have risen. For instance, according to Trepp, the owner of Willis Tower, which was the tallest building in the world for 25 years as the Sears Tower, has requested a 5th and final …