RCA in the commercial property press:

More Sellers Than Buyers in Fort Wayne

Journal Gazette reports: Bankers nationwide are bracing for a new flood of foreclosures.

But this time commercial borrowers – not homeowners – are dancing with default.

The Congressional Oversight Panel last month issued a report that said it “is deeply concerned that commercial loan losses could jeopardize the stability of many banks, particularly the nation’s mid-size and smaller banks.” It went on to express concern “that as the damage spreads beyond individual banks … it will contribute to prolonged weakness throughout the economy.”

Bob Hall, Fort Wayne market president for Old National Bank, confirmed this area’s CRE market is soft.

“You can drive around Fort Wayne and see a lot of for-lease, vacant office spaces,” he said.

Real Capital Analytics, a New York-based research firm, has counted eight distressed commercial assets worth a combined $229 million in Fort Wayne. Toledo, which has a population similar to Fort Wayne’s, has 17 distressed commercial properties valued at $112 million.

Real Capital Analytics defines distressed properties as those that are in foreclosure, bankruptcy or have restructured or modified loan terms. The firm uses assessor records, public records, news sources and other sources to compile its lists, research services director Jessica Ruderman told The Journal Gazette last week.

Articles related to this topic:

 Oversight Panel Report Forecasts More Commercial Distress
 Optimism Growing in Commercial Real Estate
 List of Lender-Owned Office Properties Growing

Posted by: Nina Turner

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