From the category archives:

commercial real estate loans

San Francisco Leads Detroit In CMBS Delinquencies for Apartment Properties

October 13, 2009

San Francisco, once considered one of the strongest commercial real estate markets in the country, had one of the largest increases in overall CMBS default rates in the second quarter of 2009, up 444 basis points to 5.15% (and yes, this was even worse than Miami). Detroit was still the worst performing market, with an [...]

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Notices of Default in the North Bay (Healdsburg Housing Bubble, 10/14/09)
Commercial Real Estate: Now Is the Perfect Time to Invest (Investment U, 12/30/09)
Is the US Reaching a Strategic Default Tipping Point? (naked capitalism, 2/3/10)
Read more on Default, Commercial Real Estate at Wikinvest
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Long Odds For Apartment Owners In Vegas; Prices Down By At Least 60%

October 12, 2009

If you are investing in REITs right now, life is good. The US MSCI REIT index has doubled since hitting its lows in March, and in the second quarter Mid America (MAA) generated $.05/share in earnings from the sale of just one asset, a 36 year old, 96 unit apartment building in Grenada, Mississipi. Indeed, [...]

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Bad Commercial Real Estate Loans Are Coming in Hot! And They’re Right on Schedule

August 12, 2009

It’s summertime and the living is easy, but if you’re a distressed debt broker, this is no time to be mixing Cuba Libres at the beach. There have been 72 bank failures in the first eight months of 2009, compared with 26 in all of 2008 and just 3 in 2007. So it should be [...]

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Billions, Literally, Chasing Distressed Commercial Real Estate

July 15, 2009

Even with all the capital now chasing distressed commercial real estate, it’s still not clear whether these bargains are really much of a bargain. 250 Montgomery St., a downtown San Francisco office building that traded via a distressed note sale is the latest example of the uncertainty. The building, located on San Francisco’s “Wall Street [...]

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Cliff Diving With New York City Landlords

June 3, 2009

According to Robert Knakal of the eponymous in Manhattan commercial real estate brokerage firm Massey Knakal, the dismantling of Wall Street on September 15th is also dismantling the net worth of hundreds of New York City landlords. It’s actually not that simple, but his excellent and striking sales data sets the stage: the New York [...]

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FDIC Loan Sales – The Good, The Bad and The Ugly

May 18, 2009

Last week, Zero Hedge attempted to make a tortuous connection between the sales prices of “performing” commercial real estate loans being sold by the FDIC and the book value of performing CRE loans held by healthy financial firms – presumably the likes of JP Morgan Chase, Goldman Sachs, Morgan Stanley and others. Aside from [...]

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Something Not Adding Up on Option-ARMs (Healdsburg Housing Bubble, 5/15/09)
FHA vs Conventional Home Loan - Comparing the Difference and Which is Better (Saving to Invest, 5/15/09)
Hey, no one made people buy these cars! (naked capitalism, 3/4/10)
Read more on Loans at Wikinvest
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Commercial Real Estate Loan Originations Show Continued Deterioration in CRE

May 15, 2009

The Mortgage Bankers Association has released their quarterly survey of commercial/multi-family loan originations, and it shows continued dramatic deterioration in all CRE lending sectors, including an 80% plunge in bank lending.
Earlier this week, I wrote that commercial real estate transaction volume had declined to practically zero, so it’s no surprise that loan originations would show [...]

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Dead on Arrival: Geithner’s Plan Can’t Stop The Tidal Wave of Commercial Mortgage Maturities

March 31, 2009

2005 is coming, and nobody can stop it. Like a giant flock of boomerangs, the mortgages originated during the boom years of 2005-2007 are returning home, and the bankers are already struggling to keep up with all the arrivals.
Approximately 80% of new 2008 loans were originated simply to refinance existing maturing mortgages, compared [...]

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Commercial Real Estate Loans, Jamcrackers, Pike Poles and Dynamite

January 5, 2009

Many commercial real estate loans are heading inexorably toward their 2009 maturities, and straight into a titanic log jam in the capital markets. In the old days of commercial logging, this uncertain situation called for a Jamcracker. The job was extremely dangerous and required the Jamcracker to walk over the log jam and break it [...]

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The Coming Bust In Commercial Real Estate: Why Developers Are Desperate For the Dole

December 23, 2008

REITWrecks: December 23, 2008
Both Bloomberg and the Wall Street Journal published stories on Monday warning of increasing trouble in the land of commercial real estate. It’s going to be pretty bad, there’s no doubt about it. But why is it bad and who is it really going to hurt? The Bloomberg headline claimed defaults could [...]

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