Defaulting Commercial Properties Hit Banks on Vacancy-Rate Rise
Bloomberg reports: While the housing boom of the past decade drove banks to issue tens of thousands of subprime and option adjustable-rate residential loans, lenders also made cheap credit available to builders and buyers of high-rise office buildings, strip malls and apartment complexes.
The number of retail properties seized by banks or in some state of default rose to 464 this month, more than triple the number on Dec. 18, with a total value of $7 billion, according to Jessica Ruderman, a research analyst at Real Capital Analytics Inc. in New York. That means banks aren’t being repaid and are stuck owning properties that have plunged in value.
[RCA's Troubled Asset Search tool helps subscribers find investment opportunities and distressed assets in any market, as well as view the sales and refinancing history of specific properties. The site's tools also allow the tracking of new situations as they arise in the multifamily, office, industrial, retail, hotel and development markets.]
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Posted by: Nina Turner