RCA in the commercial property press:

Silicon Valley Brokers Aid Banks In Unloading Properties

Silicon Valley/San Jose Business Journal reports: After a year of record-low activity in the buying and selling of real estate, veterans are rolling up their sleeves to handle the next wave certain to hit hard in 2010: distressed assets that have gone back to the lender.

Calling the level of distress “formidable,” Real Capital Analytics said in its December report that nearly $180 billion worth of real estate is in trouble, and only 10 percent has been resolved.

With just 50 buildings valued at $584 million labeled as troubled in the South Bay, San Jose has the distinction of being the metropolitan area with the lowest level of troubled buildings in the 57 cities tracked by Real Capital Analytics. But that probably will change.

“There may be more to come in SJ,” predicted Dan Fasulo, managing director of the New York firm.

Fasulo explained that much of the ownership of Silicon Valley real estate changed from private and local hands to institutions during the past few years. While initially the new landlords may have greater financial strength, Fasulo said it only delays the inevitable if the asset is overleveraged and empty.

Articles related to this topic:

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 Houston Tops Texas CRE Distressed Markets
 New Distressed Manhattan Property Tally Tops $12 Billion
 Offices At Ire-Sale Prices
 US commercial property values at lowest levels in 7 years
 Silicon Valley 'Bloodbath' Leaves Office Buildings Empty
 Distressed Commercial Properties Are Poised for Deals in O.C.
 Oversight Panel Report Forecasts More Commercial Distress

Posted by: Mark Alferman

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