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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News Release- Commercial Real Estate Loan for $1.5 Billion Secured

Posted by admin on under Good Info - Read It | 2 Comments to Read

This news release surfaced today – it seems that Capmark Financial has secured a loan from private sources in the sum of $1.5 billion. CapMark is an investment firm that specializes in CMBS (commercial mortgage backed securities). They currently have a portfolio of investments are beginning to come due in 3Q and 4Q 2009. This loan will stabilize their portfolio of investments for at least 10 months at worst, depending on terms and conditions set forth the the loan documents.

To me, this is a great sign that some of this commercial debt is attractive to large investment banks – and that they are willing to put some of their cash on the street and at risk for the next 12-18 months.

Full News Release: Read more of this article »

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S&P Offers No Optimism for Commercial Real Estate Market

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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

666

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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Buying Commercial Real Estate With No Money?

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

Not likely.

2584995793_3789108e1dEveryone has been conditioned to actually believe there are tons of deals to be had out there for nothing…It seems like everyone has a story about  a brother-in-law, cousin, best friend’s ex-roomate, and upstairs neighbor that has purchased, and “flipped”(how much does everyone hate that term now…haha) some real estate with zero money. They love to tell about the house they bought on a 100% mortgage, remodeled on a 0% credit line at the local home improvement warehouse, and sold for a $20k rip.

Well, at the base of everyone one of these stories is a kernel of truth, and if the base truth is 50% as good as the final story then it is reasonable to believe that some of these people actually did make some money on real estate investments with very little of their own hard cash. Read more of this article »

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Optimistic News about Commercial Market, but Credit Still Tight

Posted by admin on April 26, 2009 under Old News - and some New | Be the First to Comment

ist2_6085114-c-clamp-squeezing-new-five-dollar-bill-tight-money-isolatedI bumped into this story online yesterday – some interesting news that I found encouraging
– Tim

WASHINGTON – April 22, 2009 – Senior real estate executives believe market conditions in the income-producing real estate sector – encompassing office buildings, shopping malls, warehouses, hotels, and apartment buildings – are getting better, Read more of this article »

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