David Pratt Quoted in Dallas Business Journal on Impact of Maturing Office Loans

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.