Jake Handelsman Quoted in Long Island Business News
Friday, April 1, 2016
Hitting the ‘Wall of Maturities’ By: David Winzelberg
It’s time to pay the piper. That’s what many owners of highly leveraged commercial properties are hearing these days, especially those who took securitized loans during the fast-and-loose borrowing times a decade ago.
Picking up the Pieces
Meanwhile, mortgage brokers on the front lines of the refinancing battles say the so-called ‘wall of maturities’ is creating opportunities for the area’s community banks and credit unions seeking to scoop up more commercial real estate financing business.
Jake Handelsman, managing director for Eastern Union Funding’s Long Island office in Valley Stream, said “a lot of these deals are being snatched up by banks and credit unions.” He named Bethpage Federal Credit Union, Suffolk County National Bank, Empire Bank and Gold Coast Bank as lenders that have been actively taking over maturing CMBS loans.
“What I’m structuring for these CMBS borrowers coming due is a finance structure where they’re not cashing out their money on the refinance, instead they’re getting their money from the property income via getting an interest-only period,” Handelsman said.