SAVING DEALS IN DISTRESS

Investors are hungry for distressed deals. But only if the basis is greatly written down. That's one of the trends we picked up at our Atlanta Capital Markets  event this week at the Westin Buckhead. (We also learned green ties are awesome.)
 
Told ya. We heard from Cassidy Turley's Gary Lee who told the more than 300 CRE pros that when distressed properties are drastically reduced from original values, there's an appetite for it from investors. In fact, he expects a coming auction of ?juicy? properties where LNR will gain a lot of attention. ?[The portolio] represents  70% to 80% reduction in the original balance,? he says.
 
One of our two panels:  ING's  Greg Michaud, Sutherland Asbill & Brennan partner Ed Hales, TriMont Real Estate Advisors' John Charles, and Gary. Greg says on a recent trip to DC, he learned new changes in federal law governing the CMBS world may be repealed or at least altered to fit economic realities better: ?The Dodd-Frank bill is going to be a challenge for securitization going forward.?
John says that banks continue to delay foreclosures on loans, as in ?the kind of delay and pray stall. And it has worked.? And despite all common sense, 10-year Treasuries continue to decline. For investors, John says there will come a time where today's deals will be considered the deals of the century. ?Twenty years from now when you think back to today, and you say, 'Wow, why didn't I do that?' I think it's going to have to do with interest rates.?

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