CMBS Biz On The Rise

NAI's got a booming court-appointed receivership group, and when we chatted with prez James Kilpatrick Monday (here with wife Mandy) we found out why. Special servicer C-III Capital Partners owns the global NAI brand, and the S.F. office tracks CMBS maturities pretty carefully. It's done about eight Bay Area assignments for distressed CMBS deals in the past 12 months, including retail centers in Vallejo, Gilroy, and San Carlos. Why the rise in foreclosures? Thank aggressive underwriting in 2004 to 2008, when very low debt-coverage ratios resulted in very high LTVs. That, combined with high rents, makes it almost impossible to refi a property, James tells us—even in a strong market like the Bay Area.

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Related Topics: III Capital Partners , San Carlos
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