CHIEF REALITY OFFICERS
| Our headline is how panelists described themselves when it came to workouts at yesterday’s REIA event on liquidity. JRG Capital Partners' Bob Flannery set the tone, recommending throwing a dart at a target with your options. (While true, it's proof you shouldn’t watch Olympic sports before speaking at these things.) | |
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A dozen spoke on what investors, lenders, and end-users should do with their money or distressed properties. Fifth Third Bank's Randy Schwarzmann and Harris Bank's Larry Rhum emphasized those looking for a workout be diligent and honest about the asset’s true state: What is the cash flow? Occupancy rate? Borrowers who are flexible may have a chance of getting a loan, they say. Larry gets about 10 calls a week about deals on workouts, but he says he's unlikely to respond unless they have cash to put down or a relationship with him or someone he knows. | |
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On institutional investments, BPG Properties' Joe Neverauskas, CrossHarbor Capital Partners' Tom Stevens, and Hillco Real Estate's Ron Lubin say they’re still doing business, even if deal flow is a little slow. Joe recently sold two office towers totaling 550k-SF in suburban St. Louis, showing that assets are still moving if they're well capitalized and well-maintained. Tom's company bought the Yellowstone Club at a bargain last year and is now set to make a profit off the historic property. | |
