Escalating Commercial Mortgage Defaults; Uptick in Property Values

February 27, 2010

According to Real Capital Analytics, a research company that tracks commercial real estate trends, the default rate on commercial real estate loans increased to 3.8% from 1.6% a year ago. Moreover, separately assessed in its own category, the default rate on loans tied to multifamily properties escalated to 4.4% from 1.8% a year [...]

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Minimizing Your Risks in the Purchase Contract for a CRE Investment

February 10, 2010

Most investors leave the review of their property purchase contract to their attorneys.  However, having an understanding about what to look for and what questions to ask can pay off immeasurably-not only in dollars and cents but in time and emotional well-being.   Typically your real estate lawyer receives a “term sheet” from the brokers, [...]

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4 Demographic Trends Expected to Affect Housing in the Future

January 29, 2010

A recent report by the Urban Land Institute cites four demographic trends which will impact housing in a significant way:
1. Aging Baby Boomers (55 to 64 year olds) given the losses in their net worth, many will be compelled to continue to work and to remain in their suburban homes until real estate values recover.  [...]

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Citigroup to Sell Its Commercial Real Estate Portfolio

January 29, 2010

Seeking to reorient and stabilize, Citigroup is selling its Citi Propery Investors portfolio in order to focus on its retail and investment banking businesses.  Ironically, Joseph Azrack who helped build a $13 billion portfolio of commercial properties for the bank and which now has plummeted in value since his departure in 2008, is in the [...]

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