Posts tagged as:

commercial loan modification

Commercial Real Estate Blood Bath to Begin

Commercial real estate — including shopping centers, office buildings and industrial property — will hit a low point in 2010 not seen since the Great Depression, according to a national survey of real estate executives.
Values and rents will plunge, and vacancies and defaults will soar across all types of commercial property before the market rebounds [...]

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U.S. Banks to See Sizable Losses on Commercial Property

U.S. banks are at risk of sizable new loan losses, particularly on commercial property, and some banks may not have sufficient capital to fully cushion against losses, a Federal Reserve official said on Monday.
Some large regional and community banks that have built up unusually high concentrations in commercial real estate loans will be “particularly affected” [...]

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US Bank Regulators: “Prudent” Commercial Loan Modifications

* Regulators urge “prudent” commercial loan modifications
* Commercial real estate seen as trouble spot for banks

By Karey Wutkowski WASHINGTON, Oct 30 (Reuters) – U.S regulators on Friday encouraged banks to modify troubled commercial real estate loans, which are seen as a looming danger spot for the banking industry.
The regulators issued guidance to financial institutions and [...]

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“Huge Commercial Real Estate Crash Coming” – Wilbur Ross

This has been mentioned on my blog for the last two years and now it looks like the dominoes are really starting to fall in commercial real estate. I am predicting the crash of 2010-2012 will wipe out 25-40% of all small to large sized US businesses and thus devastating the commercial sector.
The trickle down affect from lost jobs, more [...]

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Commercial foreclosure crisis to swallow local economies

The impending commercial foreclosure crisis will be one like our nation has never seen. Once bustling buildings of commerce, now many commercial projects have turned into ghost towns of economic destruction. With vacancy rates sky rocketing, tenants not paying rent, bankruptcies galore and that fact that no one is buying anything, can only mean one thing.
The commercial [...]

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Commercial mortgage backed securities begin to haunt investors

The loans behind Maui Prince were financed by commercial mortgage-backed securities, or CMBS. The resort’s failure reflects the troubled market for these bonds, which are backed by a pool of mortgages on commercial properties. The market for CMBS is one leg of the stool supporting the commercial real estate sector, providing a vital source of [...]

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California Hotel Foreclosures Triple in Travel Slump

Hotel foreclosures in California more than tripled in the first nine months of this year as business travelers and vacationers cut spending.
Foreclosures including the 400-room St. Regis Monarch Beach resort in Dana Point climbed to 47 in January through September from 15 a year earlier. Properties in default more than quadrupled to 259, Irvine, California-based [...]

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IRS Issues Rule To Aid Commercial Real-Estate Sector

Owners and developers of commercial real estate will now have more flexibility to rework their mortgages or obtain loan extensions under a new federal tax rule, a change that could aid the troubled sector.
The new rule, issued by the Internal Revenue Service, will affect loans backed by shopping malls, office parks and other commercial properties [...]

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For Commercial Real Estate, Hard Times Have Just Begun

As the commercial real estate market heated up earlier in the decade and lenders competed feverishly to issue ever-riskier mortgages, hundreds of bankers, investors, lawyers, brokers, appraisers, accountants and analysts flocked to an investors’ conference in Florida each January to celebrate their good fortune with lavish beach parties featuring bikini-clad models and popular entertainers.
But in [...]

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Commercial Real Estate’s $1 Trillion Time Bomb

According to analysts at Deutsche Bank AG, as property value declines and scarce credit continue to drive commercial property developers and investors into default, total lifetime losses on banks’ $1 trillion “core” commercial-mortgage holdings, or those backed by income-producing properties, would reach between 11.6% and 15.3%, or $115 billion and $150 billion. Those expected losses [...]

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California hotels flood the market

LA TIMES – Los Angeles County has the highest number of troubled hotels: 27, including the 469-room Marriott in downtown L.A., according to a new Atlas report.
With the trend expected to continue throughout 2009, as many as 500 properties could be in default by year’s end, Atlas President Alan X. Reay said.
Read more from the [...]

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Number of Hotel Foreclosures, Defaults Increasing

TOURISM: Values Have Declined 50% to 80% in Last 3 Years, Broker Says
The number of California hotels that are in default on their loans or have gone into foreclosure has jumped a whopping 125 percent in the past 60 days.
There were 32 properties in foreclosure and 174 in default, according to a June 28 report [...]

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Commercial Foreclosures: US programs seen too late to stem foreclosure wave

* CMBS default rate could hit 3.5 percent by year-end
* Bank default rate could reach 4.8 percent in 2011
* Commercial real estate prices may fall 35-45 pct from 07 peak
By Ilaina Jonas
NEW YORK, March 26 (Reuters) – The new federal programs to aid the U.S. financial markets will likely not fend off the impending wave [...]

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What’s the latest fitness craze? The loan workout

Brownstone and other local loan workout specialists have their hands full these days. With condo sales stalled and commercial building values eroded across the region, antsy lenders have been quick to put projects on watch lists at the first sign of trouble. Those signs could be anything from insufficient sales or leases to slashed asking prices that could make a project unprofitable.

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REAL ESTATE: HOMEOWNERS HAVE COMPANY

Vacant land owners make up the bulk of commercial property defaults in Las Vegas, said Travis Nelson, assistant vice president of commercial sales at Nevada Title Co.

“There’s no income from the land. It’s hard to carry. You have a lot of higher-interest loans from private sources and hard money lenders,” Nelson said.

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Tough ‘09 Is Seen for Commercial Real Estate

This year will be among the worst for the U.S. commercial real estate industry, as unemployment leads to a drop of as much as 30 percent in rents in some places and more office towers from Washington to Chicago and Los Angeles sit empty, according to several research reports from large commercial real estate service companies.

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Commercial Foreclosure Tsunami on the Way

Looks like the commercial mortgage arena will have a rough year in 2008. It is only the next logical foreclosure wave to hit the US and this tsunami may be the mother of all waves that drowns what’s left of our economy.
Reuters – Commercial property loans originated in 2005 to 2007 that increasingly carried [...]

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