One option for lenders is to extend the loans, which may be an appealing choice for some lenders, according to Jeff Dritely, managing partner of Los Angeles-based Kearny Real Estate. Dritely explains that, until the banks have new and better opportunities to place their money, “With the economy growing very slowly and new loan demand low, kicking the can down the road and continuing to collect the cash flow from the property is not such a bad outcome, given the limited new opportunities.”

However, banks are under pressure from regulators to clear troubled loans from their books, so the huge volume of maturities this year means that many of these loans will go into foreclosure or will be offered as note sales—two of the areas where many of the opportunities lie for investors. As Muller points out, the opportunities for investors range from joining the existing borrower as a partner to taking over the property via note sales and foreclosures. An investor “can be the white knight bringing in new money to an existing venture,” he says. “They can buy the project and work out a short pay with the lender, eliminating the existing owners; or they can try to buy the loan at a discount, and plan to foreclose when the borrower fails to refinance.”

According to Fink, maturing loan opportunities are strongest in the retail and office property types, with multifamily and hotels rounding out the top property types. In terms of balance, almost 50% of the loans have a balance of $10 million or less, so there is plenty of opportunity for the small investor, he adds.

Peter Fitzgerald, COO and principal of the RADCO Cos. in Atlanta, sees opportunity in small-balance community bank portfolios, “where the incentive is to get rid of assets and for properties that are older and require significant management effort to improve performance.” Although these type of deals are still hard to find, he says, “they do exist and banks are transacting.”

In addition, Fitzgerald says that although note purchases have not been his company’s primary acquisition focus, RADCO has had success with purchasing apartment notes. “We like note purchases because they offer alternative ways to meet investment objectives, either through foreclosure or the borrower performs at some level,” he says. In one case, Fitzgerald says, “We bought a note well and within two months sold it back to the borrower at a discount. We made money, and the borrower felt they got a deal as their debt balance was reduced.”

In terms of dollars, most of the opportunities for investment will be in bank loans. CMBS represents a relatively small portion of the loans coming due, with approximately $79 billion maturing in the remainder of 2012 and about $50 billion maturing in 2013, according to Fink. For those who do venture into the world of CMBS distress, Fink advises that, if a loan is already in default, the special servicer will look to maximize the return to the CMBS investors. As a result, he says, the special servicer is driven by hard-money decisions, so the investor will need to have serious cash available to fund the workout strategy.