Loan maturities this year will rise 8 percent from the $102.2 billion that matured in 2018.

Fully $110.5 billion of the $1.9 trillion (6 percent) of outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2019, according to the Commercial Real Estate-Multifamily Survey of Loan Maturity Volumes from the Mortgage Bankers Association.

“The upcoming roll of commercial and multifamily mortgage maturities is relatively stable, after seven years of instability,” said Jamie Woodwell, vice president for commercial real estate research of MBA. “Many commercial and multifamily mortgages have 10-year terms, and a decade ago, the Great Recession meant fewer new loans were being made. As a result, 2018 and 2019 loan maturity volumes have been smaller than would otherwise be the case. However, a sizable share of shorter-term loans financed in the last few years have made up the difference."

From 2020 to 2024, $130 billion to just more than $150-billion of non-bank-held mortgages will mature each year. Multifamily loans will make up a larger share of non-bank maturities, and government-sponsored enterprise loans will be a larger share of those.

According to this year’s survey, loan maturities vary significantly by investor group. Just $11.4 billion (2 percent) of the outstanding balance of multifamily and health care mortgages held or guaranteed by Fannie Mae, Freddie Mac, FHA and Ginnie Mae will mature this year. Life-insurance companies will see $15.8 billion (3 percent) of their outstanding mortgage balances mature, and among loans held in CMBS, $45.9 billion (9 percent) will come due in 2019. Among commercial mortgages held by credit companies and other investors, $37.3 billion (21 percent) will mature.

The dollar figures reported are the unpaid principle balances as of Dec. 31, 2018.  Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported in MBA’s survey.

The survey covers $1.89 trillion of commercial and multifamily mortgages held or insured by life companies, Fannie Mae, Freddie Mac, Federal Housing Administration, CMBS trusts and other non-bank lenders and investors. Banks and thrifts hold an additional $1.3 trillion in mortgages backed by income-producing properties, which are not covered by this survey.

The Mogharebi Group completed the sale of Paradise Apartments in Chico, Calif., a164-unit community, located on West Sacramento Avenue for $18,200,000. The price breaks down to  $110,976 for each unit or $143 per square foot. The buyer was a private investment group out of Calabasas, Calif., that specializes in student housing.

“Due to the attractive price per unit, there was strong interest in the Paradise Apartments,” says Otto Ozen, executive vice president of TMG. “To maximize the value of this community, we aggressively marketed it to our list of high net worth private clients and student housing investors.”

Otto Ozen, Alex Mogharebi, and Bryan LaBar of TMG represented the seller, an investment group, as well as the buyer.

Built from 1974 to 1988, Paradise Apartments, a two story apartment community, comprises 34 residential buildings with 127,572 rentable square feet, situated on 15.1 acres. The apartments features one, two, three, and four-bedroom units.

Pembrook Capital Management originated a $9,150,000 million first-mortgage construction loan for the development of a 70-unit multifamily project with retail in Philadelphia.

[caption id="attachment_9795" align="alignleft" width="240"] Philadelphia[/caption]

Located at 1427 Germantown Avenue, the 53,575 square foot property will offer smaller, more affordable rental housing than many other new projects built in the nearby Northern Liberties and Fishtown neighborhoods.

"We continue to provide financing solutions for middle-market developers and owners throughout the U.S.," said Stuart J. Boesky, CEO of Pembrook. "We're bullish on Philadelphia's multifamily market and this transaction is a great opportunity for investment into a neighborhood that is in the process of rapid revitalization. It's exciting to support a project that has the potential to deliver more affordable apartments to renters in the local market."

The sponsor is an active multifamily developer in the Philadelphia metro area. A similar 50-unit project is under development by the sponsor in the same neighborhood.

Pembrook is a real-estate investment manager that provides financing throughout the capital structure. The firm has originated or participated in investments totaling over $1.4 billion since it began investing in 2007.