A new report from Yardi Matrix looks at upcoming loan maturities on affordable multifamily properties. It finds that these loans typically have longer terms than do those on market-rate properties.
Defining the focus
The report looks at properties that have 90 percent or more of their units under some sort of rent restriction. It covers 26,000 such properties with total mortgage debt of $116.1 billion.
The report looks at the loan maturity dates for 4 defined categories of lenders along with an “other” category for smaller loan issuers. The categories are banks, which hold $45.8 billion of mortgages on affordable properties, CMBS, which includes Freddie Mac securitized loans, with $29.0 billion, governments, which includes HUD and single-asset Fannie Mae loans, with $37.4 billion outstanding and debt funds with $2.1 billion outstanding. The “other” category has $1.7 billion in affordable multifamily mortgage debt outstanding.
How lenders differ
The first chart shows the makeup of the loan maturities over the next 10 years. It shows a relatively steady pace of maturities, with a low of $2.9 billion in 2027 and a high of $5.1 billion in 2032. However, it also shows that the category of lender whose loans are maturing varies significantly by year. Banks dominate maturities in 2025 and 2026, but CMBS loans represent the largest volume of maturities in 2029 through 2035.
The second chart looks at the annual affordable multifamily loan maturities as a percentage of the total loan value outstanding for each category of lender. It shows that government entities have a relatively steady portion of their loans maturing each year. This is also true for banks, with the exception of the first 3 years. On the other hand, the portion of CMBS loans maturing by year varies greatly. It peaks at 13.1 percent of loans maturing in 2032. The portion of loans maturing by year for debt funds also varies wildly. However, since the loan volume for this category of lender is low, a few large loan maturing can greatly influence the result.
The last chart shows the portion of affordable multifamily loans for each category of lender that mature after 2035. It shows that loans by CMBS lenders are mostly maturing before 2036 while loans by government entities are mostly maturing after 2035.
The full report discusses other aspects of lending on affordable multifamily housing. It is available on the Yardi Matrix website here.
