In 2011 banks and special servicers continue to see growth in the number of foreclosed commercial properties. This despite a dramatic shift of money center banks to sell notes on distressed debt as opposed to directly foreclosing and dealing with the legal mess, the cost and the time requirements to take possession of defaulted real estate. In 2010, one of our special servicer clients sold about $ 3 billion in commercial property in the U.S. Problem was $9 billion of new REO came in the door during the same time period. All these assets came from banks. How can those responsible to sell these assets accelerate the rate at which property can be sold at the best price?
One idea is for banks and others to invest in “Pre-Diligence,” a term coined by the NAI Global Special Asset Solutions team. Today More >
Trophies vs. Trash – it’s just one way to explain what is happening in today’s commercial real estate market. The Trophies are those main-and-main, big city stabilized assets that are the envy of every serious institutional owner. And because the number of those assets is finite and the capital chasing them seemingly endless, prices–believe it or not–are going up and cap rats are being compressed.
The sales of those few Trophy assets are also the ones that major publications report on when they declare that the worst is over. The recent sale of the Pritzker/Hyatt Office Building in downtown Chicago is an example of a trophy selling to California-based The More >
While working with a US-based client on a series of property acquisitions in the Caribbean, he had the idea of performing a couple of nifty 1031 exchanges in Puerto Rico. Emotions were running high that he could achieve this with a significant amount of tax savings. I warned him to be a bit more circumspect. If there is anything my international real estate experience has taught me, it is not to take anything for granted. I suggested that we confirm that a 1031 exchange is possible. A good thing I did. We conferred with a renowned local Puerto Rico tax expert, Manuel López Zambrana of Manuel López Zambrana, PSC (firstname.lastname@example.org), and More >
The magnitude of this crisis is visible in the loss of homes and businesses and continues to be seen in the faces of the survivors and the loved ones who have been left behind. While many will attempt to answer the global capital markets question over the next couple of weeks, I wanted to take this moment to put my blackberry, my pen, my Bluetooth and my Wall Street Journal down, to express deepest sympathies for those who lost their lives in this disaster. With over 25 years in the business, one thing is for certain. The market will rise and fall for many reasons, but the most important investment we can ever make, is in each other.
My thoughts go out to those who have suffered a great deal as a result of this tragedy.
In today’s complex market, most commercial real estate disposition assignments are executed using the services of a qualified broker to analyze the market and the property and to sell the asset for the highest possible price in a timeframe that is consistent with the specific needs of the owner/client.
If no obvious choice exists, most owners interview two or three brokerage firms and then make an informed selection, based in part, on the following:
- The firm’s national reputation;
- The firm’s presence in and knowledge of the immediate local market; and More >