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ARTICLE · 31 OCTOBER 2024

The Risks Of Debt Purchase Transactions

Womble Bond Dickinson
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The commercial real estate (CRE) industry is facing a looming wall of $2 trillion in debt maturities, with an estimated $929 billion coming due this year. These staggering numbers are particularly troubling...

United StatesReal Estate and Construction
Pamela V. Rothenberg
Pamela V. Rothenberg
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This article originally published in the November 2024 issue of ALI CLE's The Practical Real Estate Lawyer.

The commercial real estate (CRE) industry is facing a looming wall of $2 trillion in debt maturities, with an estimated $929 billion coming due this year.1 These staggering numbers are particularly troubling since refinancing opportunities for these CRE loans are limited or unavailable because of continuing high interest rates, declining CRE property values, and the absence of meaningful transactional activity on the part of CRE lenders. With this dismal backdrop, it is not surprising that in the next three years, $670 billion of the maturing debt will likely be comprised of "potentially troubled" loans largely in the office and multifamily sectors (but with some lesser impact on retail and industrial assets).

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