Robert Kravitz of Delray Beach, Florida explains why experienced receivers are critical as commercial real estate faces a historic debt maturity cycle.

DELRAY BEACH, FL / ACCESS Newswire / February 17, 2026 / As nearly $2 trillion in commercial real estate debt comes due by 2027-almost $1 trillion of it in 2025 alone-Robert Kravitz, CEO of NFRC Commercial Capital, is drawing attention to the growing role receiverships are playing in stabilizing distressed assets across the Midwest.

With borrowing costs still elevated, property values under pressure, and lenders increasingly risk-averse, receiverships have emerged as one of the most active tools for resolving underperforming loans. According to Kravitz, this is not a temporary spike, but a structural shift in how the market is working through distress.

"We are in one of the most active receivership environments the Midwest has seen in years," said Kravitz. "This is being driven less by operational failure and more by capital structures that no longer work in today's interest rate and valuation environment."

Receiverships and distressed asset assignments now represent one of the firm's busiest areas of business. The company is currently managing court-appointed receiverships across Michigan, Illinois, Ohio, and several other states, reflecting broader regional stress across multiple property types.

The Maturity Wall Driving Distress

The current wave of receiverships is being fueled by what many in the industry call the "maturity wall." Loans originated during historically low interest rate periods are now maturing in a far less forgiving capital market. Many borrowers are facing refinancing gaps as asset values fall below outstanding loan balances.

Industry data highlights the scale of the challenge. CMBS delinquency rates reached 7.23% in September, with office loans exceeding 11%. Meanwhile, the U.S. office vacancy rate climbed to a record 20.7% in Q2 2025, placing sustained pressure on cash flow and valuations.

"Even well-capitalized sponsors are struggling to refinance," Kravitz said. "Office properties, in particular, are dealing with declining occupancy and shorter lease terms, which makes lenders hesitant to extend new credit."

While office remains the most visible source of distress, Kravitz notes that stress is spreading into other asset classes. Older multifamily properties are seeing expenses outpace rent growth. Workforce housing and aging industrial assets are under strain in several Midwest markets. Senior housing continues to face labor shortages and margin pressure following the pandemic.

Why Receiverships Are Increasing

According to Kravitz, distress today is often less about mismanagement and more about misaligned capital structures.

"Loan terms written during the low-rate era no longer pencil out," he said. "Higher borrowing costs and lower valuations are pushing otherwise healthy properties into technical default."

Receivership provides a structured solution. It allows assets to remain operational while offering lenders, courts, and stakeholders transparency and time to determine the most viable outcome-whether that is repositioning, recapitalization, or sale.

Navigating Receiverships Across State Lines

Receivership is highly jurisdiction-specific, making regional expertise essential. In Illinois, particularly Cook County, the process is court-intensive, with frequent hearings and strict reporting requirements. In Michigan, the Receivership Act of 2018 grants receivers immediate control and, in many cases, the authority to sell, allowing for faster resolution.

"There is no one-size-fits-all receivership process," Kravitz explained. "Understanding how each court operates can materially affect timelines, costs, and value preservation."

With more than 50 years of operating history, NFRC Commercial Capital and Robert's previous mentors have completed numerous receivership assignments across both legal environments. Its fully integrated platform-spanning property management, brokerage, and construction-allows teams to move quickly, control expenses, and maintain asset stability during transition.

A Market Reset Is Underway

Kravitz expects elevated receivership activity to continue through 2027 and beyond. As lenders become less willing to rely on extensions or forbearance, many are appointing receivers earlier in the lifecycle of distress.

"Waiting rarely restores value," he said. "Receivership creates structure at a time when uncertainty is high."

As pricing resets and ownership structures evolve, receivers are playing an increasingly central role in stabilizing the Midwest commercial real estate market.

"This environment calls for clarity and execution," Kravitz said. "Experienced receivers can help assets move through transition in a way that preserves value and supports a healthier market."

Call to Action

Property owners, lenders, and investors are encouraged to evaluate upcoming loan maturities early, understand state-specific receivership frameworks, and engage experienced local operators before distress escalates. Proactive planning can expand options and reduce downside risk.

About Robert Kravitz

Robert Kravitz is a commercial real estate executive based in Delray Beach, Florida. He and his partners have specialization in receiverships, distressed assets, and complex property operations across the Midwest. With decades of experience navigating court-appointed management and asset transitions, Kravitz is known for his practical insight into market cycles and distressed real estate resolution.

Media Contact:

Robert Kravitz
info@robertkravitzdirectlender.com/
www.robertkravitzdirectlender.com

SOURCE: Robert Kravitz