Posts tagged reo
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 >
NAI Global is very active in helping banks sell distressed assets. Most observers would agree in the last 20 years United States banks have become more complex. Lines of business have grown; transactions have become increasingly complex with multiple borrowers with divergent interests; multi-tiered loan structures became common and crafty lawyer inspired special provisions are sprinkled in here and there. During the same time period, however, commercial real estate transactions have also become far more complex. The complexity of transactions is a significant management problem in and of itself. Information overload often forces bright, hard working bank employees to make mistakes just because the time or experience is not available to fully understand the details of a transaction. More >
Pension funds across the U.S. are expected to ramp up their commercial real estate allocations in 2010, according to a new survey from Institutional Real Estate Inc. and Kingsley Associates. Commercial real estate has long been considered a long-term stable asset for pension fund portfolios, but many funds took a beating during the economic recession over the last two years. Now that the economy is in recovery mode, those funds are poised to invest up to $34 billion into real estate this year, including allocations for safe commercial real estate investments, debt, overseas deals and some riskier private equity deals for land and distressed properties. More >