I attended the Interface Distressed Asset Conference last month in Miami with our Loan Sales team leader, Pat Blount. I facilitated one of the panels on the topic of “Value, who knows”? Not only was the temperature abnormally cold, so was the outlook for commercial real estate values as we head in to 2011. The most popular panel was named “Cracking the Vault, doing business with the FDIC and Special Servicers”. The room was packed as it was evident that brokers want to know ”how to do business with” and have been frustrated by the system in place but the panelists simply said “don’t call me, I’ll call you”. I didn’t see anyone in the audience satisfied with that answer.
Archive for the ‘Distressed Assets’ Category
Is 2011 Going to be the Year of “Modify and Pacify”?
Tuesday, January 4th, 2011From Short Sales to Loan Sales
Monday, December 20th, 2010It seems as though short sales are becoming common transactions throughout the residential side of the business. Prominent residential real estate companies in Chicago now tout themselves as Short Sale specialists. Not that there is anything wrong with this, but it goes to show how the residential industry has changed when it comes to getting deals done. While short sales seem to be a solution when one faces losing his equity or losing his home, the commercial real estate side of the business has many more options for a distressed property owner.
The #CRE Buying Window is Open, as Corner-Turning Evidence Mounts
Sunday, December 5th, 2010
Popular water cooler talk about our ailing commercial real estate marketplace may now be “so-2009″. Evidence continues to mount that we have turned the corner on several levels. Most know that job creation must recover to make up for lost time, but market-timing indicators are very favorable for users and investors of commercial real estate. The window for good opportunity is wide open right now.
Distress Showing Every Sign of a Plateau via GlobeSt.com
Monday, November 1st, 2010
From Sperry Van Ness Accelerated Marketing | Atlanta, GA - We are seeing more reports almost daily that we may be at least near equilibrium regarding distressed CRE. The latest report from GlobeSt.com offers:
Delta Associates will report later today that US distressed commercial real estate has hit a plateau. If that sounds familiar, it is–the research firm declared in its last quarterly report that signs were mounting that distress was peaking and heading into a long period of plateau. “We were right,” Delta CEO Greg Leisch tells GlobeSt.com.
For the rest of the story, click HERE.
Big news about the lift on foreclosure freezes
Thursday, October 21st, 2010
From Sperry Van Ness Accelerated Marketing | Atlanta, GA - We’re seeing many headlines this week on Bank of America’s and GMAC’s announcements that they will resume foreclosure filings. Coverage ranges from positive to indifferent to negative. Regardless, this news prolongs turmoil that is swirling within many banks, and continues to impact their stock prices. Stock prices need to rebound for banks to feel comfortable in continuing to dispose of non-earning assets (foreclosed properties and non-performing loans).
Banks Restart Foreclosures via WSJ.com
Mortgage Securities Show U.S. Foreclosure Crisis Overblown: Credit Markets via Bloomberg
FDIC is praised for plan to dispose of failed banks’ assets
Wednesday, October 20th, 2010
From Sperry Van Ness Accelerated Marketing | Atlanta, GA — During last week’s Urban Land Institute fall meeting in Washington, DC, the FDIC was praised for it’s program for disposing of real estate from nearly 300 failed banks, which has totaled approximately $620 billion in assets.Builderonline.com reports the efforts of the FDIC:
The assets themselves have been a diverse bunch, ranging from massive portfolios of condo deals to single-family residential loans, REOs; and acquisition, development, and construction (AD&C) loans for residential and commercial projects…
Completing the #CRE smile
Monday, September 20th, 2010September 20, 2010. by: Steve Kawulok.
Wells Fargo, LNR to Sell Billions in Distressed Real Estate
Wednesday, May 26th, 2010From John Johnson, CCIM - Atlanta, GA | Via Bloomberg Businessweek:
Wells Fargo & Co. and LNR Property Corp. are each seeking to sell about $1 billion of distressed U.S. commercial real estate loans and assets, according to people briefed on the offerings.
Wells Fargo of San Francisco, the biggest U.S. commercial real estate lender, is taking bids on $500 million to $1 billion of office and hotel mortgages and properties, said four people, who asked not to be identified because the sale is private. LNR, the largest special servicer of commercial mortgage-backed securities, is trying to sell about $1 billion of defaulted loans, two people said.
U.S. Banks Post Profit, But Woes Persist
Tuesday, May 25th, 2010From John Johnson, CCIM - Atlanta, GA | Via the Wall Street Journal, the number of banks on the “troubled” list increases even as the FDIC continues to close banks, with the number of such troubled (mostly community) banks now at 775 nationally.
While the first quarter of 2010 did see a return to profitability for a substantial segment of banks, the continuing deterioration of commercial loan portfolios also signals that new CRE loans will remain difficult to obtain. And with non-earning loans and mounting Other Real Estate (foreclosed properties) carried at values higher than the market will absorb, the ability of real estate brokers to list and sell such assets is severely constrained (extend, pretend, and hope).