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Who's Paying?

Dallas-Ft. Worth
Who's Paying?
Having $1.2 trillion in CMBS and bank loans rolling over in the next three years leads L&B Realty Advisors EVP David Gleeson to ask the big questionWho's going to refinance that massive debt?
L&B Realty Advisors EVP David Gleeson
Surrounded by pieces of his art collection, David told us last week that he's a big proponent of allowing banks to roll those loans over. "There are huge amounts of opportunistic vulture funds raising hundreds of billions of dollars to acquire distressed properties, but the very low volume of transactions has been a big disappointment," he says. Lenders have two options: 1) Mark it to market and sell as distressed to get the loans off their books; the shareholders take the pounding while the vulture fund takes advantage of the future gain. Or, 2) Banks roll over the loans. "Why shouldn't the  shareholders benefit?" he asks.
David Gleeson, Mike Bennett and David Seifert
The pension fund CRE investment advisor has $3.6B of assets under L&B management. David, above with colleagues Mike Bennett  and David Seifert, tells us that lenders face a conundrum because they're being told by the government to finance deals. The problem is fewer borrowers (and even less sound ones) are seeking funding. David says another concern is the massive amount of fiat money that will be printed over the next decade. What will that do to investment rates and people's investment decisions? He'll share his insights as a panelist at the Bisnow Dallas  Capital Markets Breakfast & Schmooze  tomorrow at the Westin Hotel. Register now!