CMBS loans made at Market Peak
Many feel that it’s just a matter of time before all of those short-term, interest-only CMBS loans made at the peak of the market finally come due. And balance-sheet lenders can only extend-and-amend for so long—as banks slowly return to health, they’ll be able to take greater losses as they clear their balance sheets of distressed notes.
But as investors line up to capitalize on distress, it’s a different story for core assets. Throughout 2010, Class A assets in strong locations inspired bidding wars so heated that most players walked away shaking their heads at the size of the winning bid. That feeding frenzy will likely continue: More than three-quarters of respondents (78 percent) believe there will be fewer stabilized Class A assets hitting the market next year.
Meanwhile, in a sign that valuations have reached a sort of equilibrium, half of all respondents expect capitalization rates to remain flat in 2011. Only 23 percent of respondents expect to see cap rates continue to fall next year, compared to 27 percent that expect them to rise next year.
Addition to our team
We are pleased to announce the addition of Jim Thomas as our Director of Marketing. Jim brings a wealth of marketing experience with him. He will be charged with recruiting, training and managing the sales force.
Apartment companies are fighting to “keep heads in beds”. The Companies would like to have as much income as they come. Circumstances that would normally warrant eviction, such as late-payment, are now being slightly ignored.
Read Full Story Here.
Loan Delinquencies and Foreclosures on the Rise
According to a survey conducted by the Mortgage Banker’s Association Delinquencies and Foreclosures have risen to a frightening 10.06 percent. The report also states that delinquencies rose more than 4 percent from the previous quarter, seasonally-adjusted. This report is baffling many experts. There are solid indications in the marketplace that the commercial economy is improving, yet delinquency rates continue to rise.
Read more of this article here.
CMBS Delinquencies Jump as Loss Severities Peak
CMBS delinquencies netted a nearly $3.7 billion increase in April–$5.9 billion moved into delinquency and $2.3 billion balanced out. The ratings agency found that, in years, current historical weighted average loss severity for all loans liquidated at a loss is 34 percent; however, if loans with insignificant losses of less than 2 percent are excluded, or nearly one-quarter of the loans, the average increased to 47 percent. On average, loss severities were highest among older and newer vintages–latter 1990s and 2000s vintages–and lowest for middle vintages, at nearly 30 percent.
See More Here.
After Over A year of Severely Constrained Activity, in the past few months there has been a scramble towards Real Estate Acquisitions. Experts believe that the scarcity of high quality retail assets, has caused this surge in activity. However, most investors still will not touch Distressed Sales. Remington offers many options for distressed owners. See Remington’s DOR programs here.
Remington has access to multifamily capital
Although the amount of transactions is slowly starting to pick up, Multifamily lenders still have a hard time defining market value of properties. This difficulty in determining value may cause many out-of-market investors to pull their hair out. This has given an edge to buyers. Remington has over 17 years of experience in multifamily finance, and has the necessary expertise and resources to secure financing in a challenging market.
See Remington’s multifamily programs at the following website:
Commercial Property Values Likely Drop in 2010
As we continue onward into 2010 it is becoming more evident everyday why you need to refinance your property today. Experts say that Commercial Real Estate Values will continue to drop in 2010. This is only going to make your ability to refinance even hard as we continue into the year. Unless you have a significant amount of time on your mortgage to wait out the economy for everything to rebound you’re positioning yourself to losing your property. Don’t get blindsided by reality when a solution exists today. The Property Recovery Option is the best option for you today.
http://www.mortgagebankers.org/tools/FullStory.aspx?ArticleId=12092#full
Property Recovery Option
Property Recovery Option New program designed to help the owner/operator refinance their current loan.
Many current commercial real estate owners may be in trouble. Well help does exist.
We have been working extremely hard to put a solution in place to distressed real estate in the commercial market. If you own a property and because of a decline in real estate values cannot refinance it or renew your loan with your current lender, we can help.
Our PRO program (Property Recovery Option) allows borrowers to recapitalize the stack by bringing in new senior debt & mezzanine or equity to recapitalize the transaction. Please contact us today if you have a distressed situation that needs new money for recapitalization.
No Shortage of Lenders
Everyday our list of available capital grows. Now with over 400 active capital sources we have the best access to capital. Our sources are up and down the capital stack, from senior debt, mezzanine and equity investors. Our capital markets group has been doing and exceptional job and vetting these institutions and creating new ways to fund the capital stack.