Smalley Discusses Commercial Real Estate Refinancing Challenges in Kansas City Business Journal

08.25.2026

Stinson LLP Partner Scott Smalley was interviewed by the Kansas City Business Journal about the growing volume of commercial real estate loans set to mature through the end of 2027 and the challenges property owners and lenders may face as they navigate financing in a higher-interest-rate environment.

Smalley explains that while a significant number of loans are coming due, the issue is not necessarily widespread distress in the commercial real estate market. Instead, he notes that borrowers and lenders will increasingly need to find more permanent solutions for individual loans and capital structures.

"Kansas City has a lot of loans whose maturity is coming due in the second half of this year and on into 2027," Smalley said. "Amending and extending is probably not going to be the predominant approach of dealing with those loans during this period of time. Banks are wanting to see more of a permanent resolution for a lot of those loans in the market. But the story is not so much about real estate being in distress, but more so about how individual capital structures are going to get resolved on a more permanent basis."

As refinancing becomes more challenging, Smalley discusses the range of potential outcomes for borrowers and lenders, including additional capital contributions, loan modifications, note sales and property transfers. He notes that lenders and property owners often share a strong incentive to find workable solutions rather than allowing every difficult refinancing situation to result in foreclosure or a change in ownership.

Smalley represents banks and other financial institutions in a broad range of commercial lending and finance matters. As co-chair of Stinson's Banking and Financial Services Practice Division, he works with clients on complex financing transactions, mergers and acquisitions and regulatory compliance, among other matters.

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