Commercial Real Estate
CoStar reports Auction Sales since Early 2009
Aug 9th
Open the Wednesday real estate section of The Wall Street Journal or an email communication from one of the major real estate business journals and you can’t miss seeing that dozens of commercial real estate auctions occurring weekly throughout the United States. More >
Loan Sales Take Off – $1B Portfolio Now Available
Aug 9th
Loan sales represent a large volume of the distressed asset transactions that have been closing so far in 2010. Lenders and special servicers’ decisions to hold or sell specific loans are generally based on a net present value (NPV) analysis of each asset. This critical analysis accounts for the respective costs to the lender if the loan is held or acquired as REO; the capital required to then stabilize and manage the asset; and the time required to foreclose (in some states, this can be longer than a year). With certain markets and asset values of some property types continuing to deteriorate, the conclusion is often that a loan sale makes more sense to the lender than a hold. More >
Missing Details in Foreclosures can be Costly
Aug 4th
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 >
Restructurings Remain Active
Jul 27th
As the market continues to evolve, it appears the only remaining business activity is restructurings. Some things are starting to thaw in the leasing and occupancy rates across the country. Rental rates in multifamily retail are starting to creep up while office rates are stabilizing in different markets nationwide. More >
Bridging the Bid Ask spread in Difficult Times
Jul 21st
A common scenario in today’s real estate landscape is the following situation:
- A property has lost a significant part of its value due to market conditions.
- The borrower is in violation of their loan covenants and is in default
- The Lender has its own financial problems
- The Owner is out of money, ideas and alternatives
- The property is in receivership; forclosure is looming
- A sale at market value can’t produce enough proceeds to solve anyone’s problem
- Ownership is concerned over personal guarantees
- Negotiations between parties are futile and fustrating
Sound familiar? More >
