Distressed Real Estate
NAI Global’s membership were represented by Executive Vice President, Rhyne Brown and Senior Vice President, Tim Buss of the NAI Global Special Asset Solutions team at the Information Management Network (IMN) meeting in Chicago on October 9 – 10. The event – Bank & Financial Institutions Special Assets – Executive Conference on Real Estate Workouts was attended by over 350 real estate professionals representing Banks, Federal Agencies, Attorneys, Special Servicers and industry service providers. Tim Buss moderated a panel discussion on current macroeconomic issues affecting commercial real estate. In addition to NAI Global a strong contingent from NAI Farbman attended, including Andy Farbman, Todd Szymcak, and Michael Kalil. The general feeling of the attendees is we are about half way through the repositioning of the severely distressed commercial real estate cycle in the United States. Most see 2013 as a year of slow economic recovery with a wary eye on Europe and increased federal regulations taking effect resulting from new regulations stemming from the Dodd-Frank amendments. Special recognition and appreciation is extended to NAI Farbman for hosting a dinner for over twenty attendees, including five members of the C-III Asset Services group based in their Chicago office as well as attendees from Wells Fargo, US Bank and others. Rhyne, Tim and the NAI Special Assets Solution Group see ongoing opportunities for the network in 2013 to help the United States in its economic recovery.
As we round the 3th quarter 0f 2011, we are seeing that lenders are increasingly willing to sell notes/assets to clear up their books. With the real estate recovery under way, more sideline capital are chasing the few opportunities on the market and The increased demand is prompting distressed debt owners to place more of their inventory on the market. More >
In June 2010, I analyzed CoStar Group (CoStar) data on industrial, office, retail and multi-family auction sales over a 17 month period. I recently reached out to our friends at CoStar to check out the recent 10 month period, July 2010 through April 2011. The research provided by CoStar reflects auction sales of only those properties listed with CoStar.
So, what has occurred since then? What sectors are hot? More >
The ideal real estate investment broker needs to be equipped with all of the tools necessary to provide the client with a complete solution to his real estate capital needs.
However, achieving that ideal has been elusive because there is an inherent conflict between debt and equity brokers. Simply said, the equity broker is programmed to seek a sale of the asset from the client while the debt broker would rather that the client refinances that very same asset. What is lacking here is a protocol that is in the best interest of the client which is identified before the debt and equity brokers begin selling their services. More >
Note sales – more irrational exuberance!?!? Like most things in a relatively free market environment, prices of goods and services flow through the spectrum of balance and imbalance as the pendulum swings, oftentimes too far to the extreme. This creates opportunities for both buyers and sellers before settling, albeit briefly, in a balanced state. The note sales environment is firmly in that cycle today.
But why? I have seen countless examples where the notes secured by commercial real estate have traded for values that exceed the More >