OneWall Communities says rising rates narrow options for distressed property owners
TLT•TLT•TLT•TLT•OneWall Communities CEO Ron Kutas says higher interest rates are narrowing refinancing options for owners with 2021 and 2022 loans. Owners may need to add equity, return properties to lenders or sell at a loss rather than wait for rate cuts.
OneWall Communities CEO Ron Kutas says distressed property owners with 2021 and 2022 loans face fewer refinancing options as interest rates rise. They may need to contribute additional equity, return properties to lenders or sell at a loss rather than wait for rate cuts.
The brief says cutting expenses to preserve equity can accelerate asset depreciation, while stabilizing operations can help preserve value during a sale. It also says owner-operators generating returns at the property level are better positioned to withstand the cycle than those relying on financial engineering.
