Across the country, downtown areas are trying to recover from the Covid-19 pandemic. While those efforts are successful in some capacity, downtown building values have still been falling. More than 360 Twin Cities properties have loans maturing by end of 2024, valued at $2.66 billion, according to data from Bloomberg. Andrew Steil, a Minneapolis-based banking and finance lawyer at Winthrop & Weinstine, deals with distressed assets. He recently spoke to the Twin Cities Business Journal to give his take on what is going on.

It’s a topic that’s been on a lot of people’s minds. We have increasing interest rates coupled with tenancy issues, the return to work is not as robust in certain markets and certain types of properties, so as some of these loans reset and mature, rates are substantially higher, and just from a cash-flow standpoint, it’s very difficult. It’s something that a lot of lenders are looking at right now.

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July 20, 2023