| While the Trepp chart above may accurately reflect the volume increase in sums being serviced and loan count, it doesn’t at all mirror the exponential increase in broker opinions of value that Eastern Consolidated has been asked to prepare at the request for the special servicers, says the firm’s principal David Schechtman. Between ’07 and ’11, he’s seen explosive growth in the willingness and ability of the special servicers to transact through broad marketing and discounted payoffs to existing parties in the capital stack and third parties for the loans they're holding. |
| For instance, Eastern Consolidated prepared an opinion of value for a 10-building Northern Manhattan portfolio with roughly 500 residential and 20 commercial units several weeks ago. Unlike years past, David says, the servicer has reviewed the opinion, said that they agree with the valuation, and (much to his delight) made it clear that this portfolio will be going to market this fiscal quarter. In early ‘10 and certainly ’09, maybe one of every 35 opinions of value would go to market. Activity is nothing short of frenzied now, he says, and the chart doesn't reflect the incredible opportunity that abounds, which is amazingly a miniscule portion of the loans being serviced. “In the event the special servicers increase the volume of loans they're willing to sell, “ he says, “no one will be able to leave their desks.” |
FRENZY AWAITS
Continue reading this story with a free account
Log in or register
Related Topics:
David Schechtman
, Northern Manhattan
)
)
)
)
)
)
)
)
)
)
)
)