The Debt Maturity Wall: An Opportunity, Not an Obstacle

More than $4 trillion in commercial real estate loans are maturing between 2025 and 2029. In this video, Fortress leaders explains why this ‘maturity wall’ is a major opportunity for private credit.

A structural market shift

• Banks are scaling back lending due to regulatory pressures and risk exposure.
• This creates a large refinancing gap that private lenders can help fill.

Fortress’ role:

• Providing flexible financing solutions for borrowers seeking alternatives to traditional banks.
• Focusing on conservative structures and high-quality collateral.
• Leveraging extensive experience in CRE refinancing and restructuring.

Advisor opportunities:

• Access to potentially attractive private credit investments during a multi-year refinancing cycle.
• Exposure to senior-secured loans backed by real assets.
• Potential for enhanced portfolio income while managing risk.

Spencer Garfield: If you're considering investments in real estate, it's critical that you consider the debt maturity wall.

Tim Sloan: The maturity wall is shorthand for over $4 trillion of commercial real estate loans that are maturing over the next few years. Most commercial banks in this country have decided to reduce the size of their commercial real estate books, and so they're not interested in renewing those loans.

Spencer Garfield: So many of the loans that constitute the maturity wall can't be refinanced in today's market because the asset values of the property have come down and at the same time the cost of capital has gone up.

Tim Sloan: That creates an environment where private credit lenders, like Fortress, in commercial real estate can lend against properties at a very attractive advance rate with the potential of earning very attractive risk-adjusted returns.

Spencer Garfield: We think that the opportunity set as a result of the pullback in credit combined with the wall of maturities, is in the trillions of dollars and should last for many years to come.