Boston Distress Holds Steady

Goulston & Storrs Director Bruce Meyerson says the volume of loans going to special servicers in this graph seem flatter than  had been anticipated. He says that many observers had predicted ?11 and ?12 would see massive amounts of loans coming due that couldn't be refi-ed at the right numbers. So, Bruce is cautious and says that over the next 12 to 18 months this picture could change. MIT Center for Real Estate Research director David Geltner says Boston may be in step with the national trend: the CRE market may be crossing an inflexion point with loans going into special servicing no longer exceeding those coming out via cure, workout, foreclosure, or sale of the property or loan. (We'll add magic calculator wielding wizards to the list, as well. Because ya never know.) This suggests that now CRE is healthy enough for banks and special servicers to start placing more assets on the market. The economic recovery has helped prevent other loans from going bad but having more distressed property/debt come on the market may depress average observed prices for a while.

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