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Article: HUNTING DEALS
- Article from:
- Indianapolis Business Journal
- Article date:
- October 26, 2009
- Author:
CopyrightCopyright IBJ Corporation Oct 26, 2009. Provided by ProQuest LLC. (Hide copyright information)
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Just about every player in the real estate business - whether individual investor, private-equity fund or publicly traded company - is trying to raise capital to take advantage of what they see as an inevitable shakeout in commercial property.
More than $3 billion in real estate loans, many of them the short-term and interest-only variety, come due in the next five years. Few owners have any equity left in their buildings, let alone enough to meet the higher thresholds banks are demanding for refinancing. And funding from commercial mortgage-backed securities - a $1 trillion funding source just three years ago - has disappeared entirely.
Meanwhile, banks have resisted calls to take drastic ...