Year of Reckoning for Commercial-Property Lenders?

Today the Wall Street Journal has an article that is a must read for anyone in the commercial real estate industry.

The gist of the article is that this may be the year that banks, “begin biting the bullet and accepting losses to get distressed commercial real-estate assets off their books.” Past blogs have discussed the trillions of dollars raised by Opportunistic investors that are sitting on the sidelines. This may be the year that they get to deploy their capital. In the last month I’ve met with private equity investors that have $350million, $400million and $500million war chest brimming with cash. These three investors have a combined $1.25billion to invest. In 2009 they invested less than $100million. This may be the year they get to acquire real estate and loans for a fraction of what they feel is the true intrinsic value. I’m looking to be part of it.

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One response to “Year of Reckoning for Commercial-Property Lenders?

  1. This is the continuing follow-up to who will be the first to flinch. I talked to a fund in CA who is getting some real heat from their “investors” to get this money working. They are also beginning to see some glimmer of optimism that things will be better next year and there is some competition for the deals they want – that could put some pressure up from the real bottom feeding optimists. It will be a better ride that Splash Mountain – I just want to be on the ride!
    Thanks for the article.

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