As Era of "Extend & Pretend" Ends, More CRE Shopping Begins
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Free PDF Download Troubles grow in Spanish banking rescue - By Carl Moore |
As the "extend and pretend" period of the Great Recession wanes into a period of true loan modifications, lenders and note holders appear to be forcing more distressed loans into the marketplace. And in turn, institutional investors, who were disappointed in the relatively slim pickings available in the distressed markets after raising enormous sums targeted for acquisition in 2009 and 2010, seem to be back on the hunt for more opportunities in investment-grade commercial real estate.
According to the latest Commercial Repeat-Sale Indices, transaction activity increased 24% from 2,176 sale pairs in the first quarter of 2011 to 2,690 sale pairs in the second quarter of 2011. Investment grade transaction activity drove most of the increase. Noteworthy in the investment grade index is that the percent of distressed sales increased to 34% of the activity in June 2011 from 32.2% in May 2011.
Under such "extend and pretend" policies, lenders and servicers simply extended maturity dates as a way to wait out the Great Recession. Then in the second half of last year, the number of "true" modifications of principal and interest rate reductions began to make up an increased share of activity. This also opened the doors for banks to start releasing loans they did not want to modify back into the marketplace.
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Free PDF Download Troubles grow in Spanish banking rescue - By Carl Moore |
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About the Author: Carl Moore RSS for Carl's articles - Visit Carl's website CFO Capital Partners is a group of seasoned business professionals that have come together to offer a variety of services suited to fit the needs of those seeking Corporate and Real Estate Capital. We act as Independent Business Transaction Intermediary serving both Buyers and Sellers, also specializing in the Mergers & Acquisitions of businesses in the mid-market arena, nationally and internationally. Business Transfers, Selling of Businesses, acting as Finders - all fall within our province. We also work with Cooperating Intermediary and Investment Bankers nationwide as well as in Latin America, Europe and Asia. Carl Moore/ Managing Director "We Bring Experience to the Meeting" CFO Capital Partners 437 FoxTract Rd., 1st Floor Bridgeport, NY 13030 O: 315.633.9081 * Efax: 775.248.6603 Carl@CFOCapitalPartners.com * www.CFOCapitalPartners.com Loan Programs for downloads Go To: http://www.cfocapitalpartners.com/ProjectFinancingPrograms.html Click here to visit Carl's website. OutofWork Architects Turn to Stalled Projects Big Consolidation in Solarequipment Secrets to a Financeable Ground Lease How Obamas tax credit helpshurts IT spending Trends in Seniors Housing |
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