Recovery Slows in Commercial Real Estate

Early this year, John B. Levy, principal of John B. Levy & Co., a real estate investment bank in Richmond, Va, said the market seemed to be recovering. Now he is not so sure. In fact, he says it could be heading towards a cliff. The fear is that there won't be enough capital to refinance commercial loans.

10-Year Treasury Hits New Low - now is the time to be an apartment owner/investor

This is an exceptional time to be in multi-family. Our reliance on leverage and many of our loans tied to the 10 year treasury, this is nothing but good news. It will insure all time lows in interest rates.

SEC Probe Examines Bank-Loan Practices

The SEC claims to be examining the bank practices of “extend and pretend” and “amend and pretend”….well about time. It is shocking that government oversight has played a blind eye for so long. Statements from banks saying that “loan accounting is and has been appropriate” is mind boggling when you see what is plainly evident.

We and many other investors and have tried in vain to work with banks and special servicers to help restructure and buy loans with some success but mostly frustration. The financial system is gleaning massive fees by delaying and stifling the Commercial Real Estate industry.

Read the Article

What to do with $1.7 Trillion of Maturing Debt

Very interesting article focusing on what it’s going to take to deal with the maturing commercial mortgage debt: some $1.7 trillion between 2010 and 2015. The topic of discussion is also interestingly titled “Real Estate Markets 2011: What Factors Will Influence Your Decisions?” Stating that the availability of debt will be the biggest influence.

Looking from the trenches, it appears lenders are willing to extend with more time and more favorable loan terms. However, debt reduction and cram downs are becoming less common. Eventually there will be a need to "take the stuff off the books" but who knows when? It can't be too far away.

Click here to download the article

2010 CMBS Modifications Outnumber the Last 2 Years Combined

Sign of further loan modifications for sellers and possibly buyers. http://bit.ly/cfxg4X

$160B Distressed Commercial Property Hits Close to Home

The unfortunate downfall of the Lembi Family's 8000 unit portfolio has created a lot of activity in San Francisco. With around 1500 units sold off, 1200 units with loan modifications, there could be as many as 5,300 units freeing up in 2010.