Bloomberg reported that Capmark Financial Group, one of the largest U.S. commercial real estate finance companies has filed for Chapter 11 bankruptcy.  Capmark was feeling pressure on two fronts.  First and foremost, they had originated more than $10 billion worth of commercial real estate debt.  As the default rates on these loans began to increase, [...]

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In a highly publicized article today, Reuters followed up on yesterday’s speculation regarding federal guidelines for commercial loan modifications.  It now appears that this guidance for the workout of commercial mortgages will be unveiled in the very near future.  I am closely following these developments as the impact that this will have on my clients [...]

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Bloomberg reported today that the FDIC will set guidelines to modify commercial real estate loans.  This could be a major development for both the commercial real estate and lending markets.  Government guidelines could provide lending institutions with a framework within which to modify commercial mortgages, something that they are desperately lacking.  In addition, the guidelines [...]

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Bloomberg reported last week that a survey of property investors indicates that the majority of them don’t expect the commercial real estate market to recover until 2012.  The coincides with the time that the last of the commercial mortgages funded between 2005-2007 with 5 year maturity dates are set to mature.  It seems to me [...]

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According to a Bloomberg article published today, the outlook for commercial real estate is still very bleak with values having fallen 27% thru June of this year.  All indications also point to more downward pressure on rents and in turn on property values.  High unemployment, lack of consumer spending and a contraction in industrial production [...]

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The Wall Street Journal reported today that Maguire Properties, one of the largest office property owners in Southern California and a client that I have represented in the past, has warned that it will very likely default on $1.06 billion worth of debt encumbering seven properties.  Maguire has said that it will likely turn the properties [...]

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Pension funds who had been hit hard by the downturn in real estate are apparently venturing back into the asset class.  The Wall Street Journal reported today that Cadillac Fairview Corp., which is owned by Ontario Teachers’ Pension Plan, bought a 49% stake in Queens Center Mall from Macerich Co., a client that I have [...]

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The Business Insider posted an interesting chart today showing the rapid rate at which commercial real estate loans are going into default.  Deutsche Bank, a company that I have represented in the past on several deals, which has been generally very pessimistic about the condition of the real estate markets had to revise its projections [...]

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Another report by Reuters today states that commercial real estate prices dropped a record amount in the second quarter of 2009.  According to a study by the Massachusetts Institute of Technology Center for Real Estate, commercial real estate prices fell 18.1% in the second quarter, off nearly 39% from the markets peak in mid-2007.  Although [...]

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Another day and another article sounding the alarm of the impending collapse of the commercial real estate markets.  Reuters reported today that the worst is yet to come for real estate loans.  Analysts estimate that banks will likely continue to take write-downs on commercial loans for the next two years and the number of such [...]

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