RCA in the commercial property press:

Commercial Lenders Delaying Liquidation

Las Vegas Sun reports: The amount of distressed commercial real estate in Las Vegas is steady and high.

In its latest report, New York-based research firm Real Capital Analytics, which tracks commercial property across the country, said Las Vegas still holds the No. 1 spot in the nation in terms of percentage of its properties in financial trouble as of Feb. 3. The $18.8 billion in local troubled assets have held fairly steady for several months.

Of the $18.8 billion, 58 properties worth $2.7 billion have been foreclosed upon. Another 15 properties worth $1.8 billion have had their loans restructured and another 214 valued at $14.2 million remain in financial distress, said Dan Fasulo, managing director of Real Capital Analytics.

Many have predicted a “flood of distressed assets coming to the market” across the country, and investors raised hundreds of billions of dollars to buy them, but that hasn’t been the case, Fasulo said.

Lenders no longer feel pressure to liquidate and as a result an increasing number of these distressed properties are being restructured, he said.

The most common restructuring is to extend the maturity date, although the interest rate, loan balance and other terms can be modified, Fasulo said.

Articles related to this topic:

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 Atlantic City casinos need overhaul to survive
 Banks Failing to Come Clean on Commercial Real Estate Losses
 Double The Trouble: Level Of Distressed Local Property Jumps

Posted by: Nina Turner

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