Bradley partner David Pratt was quoted in the Dallas Business Journal on the maturation of office loans in 2024 and how they may impact the Dallas market.
“There’s going to be many owners who are unable to write a check or to get a new lender to make them a loan, which means we’re going to see an uptick in problem loans, which means we’re going to have an uptick of maturity defaults," said Pratt.
One study showed that 76% of CMBS oﬃce loans are at a high risk of not being able to be reﬁnanced in 2024, and Pratt said in CMBS lending in particular, fewer people want to invest in loans where oﬃce buildings are the collateral source.
“It’s going to be a tough next couple of years for oﬃce building owners," Pratt noted.
The full article, “Colonnade owner defaults on mezzanine debt, seeks relief as $223M loan deadline looms,” was published in the Dallas Business Journal on January 2, 2024.