Class A Commercial Properties Trading at Below Half Price

Posted by admin on May 11, 2009 under Good Info - Read It | Be the First to Comment

It was pretty well publicized when just last month the John Hancock Tower in Boston sold for just over $660 million – when the previous owners paid over $1.3billion for it in 2006. Now more news of other premium classs A properties in major metro areas having similar fates, and investors are showing restraint at picking up these propertis at even half price: Read more of this article »

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S&P Offers No Optimism for Commercial Real Estate Market

Posted by admin on under Uncategorized | Be the First to Comment

by Tim Davis

For those of us that aren’t heavily involved in the nuts of bolts of commercial finance, a substantial portion of the US and worldwide bond market consists of ‘commercial mortgage backed securities’, or CMBS. The CMBS market is quite volatile at this time, as so much of that debt will be coming due in the next 12-24 months. We have covered this issue in depth here on Real Estate Jokers – and will continue to do so. We do focus on trying to keep things positive, but on the other hand in order to be successful in any market condition, you need to be up to date on the facts.

Here is Standard & Poors report today on the issue: Read more of this article »

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Commercial Real Estate Balloon Estimated at over $1 Trillion

Posted by admin on May 8, 2009 under by Tim Davis | Be the First to Comment

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by Tim Davis

There are many news reports about the status of the commercial real estate mortage market – we have even reported on them here on Real Estate Jokers – The Mortgage Crisis May Have a Second Act? – but what is uncertain is exactly how much debt is on the books, and how much is going to mature or come due as the five year notes expire? I read an interesting article on Zero Hedge a while back that estimated the total commercial debt at over $1 trillion: Read more of this article »

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Commercial Loan Defaults Hit Record High

Posted by admin on May 5, 2009 under Good Info - Read It, Old News - and some New | Be the First to Comment

One thing for sure – CoStar is good for reports like this – Tim

Falling Prices Hindering Already-Difficult Ability To Refinance Loans on Time

An uptick in both the number and average loan size of new defaults resulted in a one-quarter point climb in March CMBS delinquencies to end the month at 1.53%, and there are significant indicators that point to record climb in defaults in April as well, according to Fitch Ratings.

Read the rest here

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The Mortgage Crisis May Have a Second Act?

Posted by admin on May 1, 2009 under by Tim Davis, Good Info - Read It | Read the First Comment

matsonby Tim Davis

As we all know, unlike residential mortgages, commercial paper is ammortized over a longer period of 20-30 years, but they have terms or balloon payment dates. Most popular commercial loans are for 5 year terms. If you calculate backwards and figure when the commercial market was at its peak, from mid-2006 to mid-2007, those notes will be coming due in 2010-2011.

It is foreseeable that the financing in place on that commercial property will be difficult to renew, Read more of this article »

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Banks Non-renewing? Fine- Foreclose on my Current Loan Then!

Posted by admin on April 22, 2009 under by Tim Davis, Good Info - Read It | Be the First to Comment

by Bill Davis

General Contractor of Industrial Pre-Engineered Buildings

“Surviving the current economy – An Analysis of bank lending practices of 1979-1983 “

Investment Alert! Warning bells were going off and a sense of déjà vu when I received my second phone call from a commercial real estate investor having problems renewing his commercial loan. Read more of this article »

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