RCA in the commercial property press:

Lenders Slow to Analyze Distressed CRE Loans

DS News reports: Only 10 percent of the $41 billion of distressed commercial property from a year ago has been resolved and is no longer held by the lender, according to data released this week by the global commercial property research firm Real Capital Analytics.

The company’s analysis includes only seasoned distress for which sufficient time has passed for lenders and borrowers to facilitate workouts.

The findings show that the majority of distressed commercial real estate loans held by commercial-mortgage backed securities (CMBS) trusts and domestic lenders this time last year are still classified as distressed.

Both CMBS trusts and U.S. banks have resolved a comparably small portion of their distress from a year ago. For securities trusts, this resolution most often takes the form of a loan restructuring, Real Capital said. Distressed loans held by domestic lenders are more likely to have been foreclosed.

Articles related to this topic:

 High Level of Distress Forces Some Real Estate Firms to Throw Lifelines
 Distress Remains High in the Southwest
 Commercial Real Estate Market Showing Signs of Life
 Distress Trouble Continues As Large Office Landlord Seeks Loan Modification
 Istithmar World Seeking Recovery for Mandarin
 California Steaming
 Wells Fargo and LNR Selling Distressed Assets
 REIT Vornado Bidding for Loan Servicer CW Financial
 Will Commercial Property Lending Survive as Federal Stimulus is Rolled Back?
 Banks Cut Prices to Dump Troubled Commercial Real Estate Assets

Posted by: Mark Alferman

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