Authors

Rob Cohen
Paul Santucci
Kristy Ganong
Jacqueline Cabral
Jason S. Weissman
Wil Catlin
Admin
Arianne Fitts-Napier
Guest Blogger
Lindsay Guittarr
Genevieve Pane-Joyce

All Posts

Archive for the 'REO' category

Category RSS Feed | ATOM Feed

31 Milk Street "Goes Back to Lender"

Today at about 11:40AM, 31 Milk Street was taken back by the lender by means of a credit bid of $8.2M. The par value of the note according to public records was over $16M.

http://www.bankerandtradesman.com/news137510.html

Posted at 03/23/2010 06:37 PM by Jason S. Weissman

Categories: Boston Real Estate, REO, OREO, CMBS, Subprime Mortgage

Peter Cooper Village

More stories about Styyvesant Town...great article in The New York Observer about the listing broker who sold the property to Tishman.

http://www.observer.com/2010/real-estate/selling-stuy-town

AND, more stories about the Peter Cooper transaction fall out.

http://www.observer.com/term/peter-cooper-village

Posted at 02/05/2010 04:26 PM by Jason S. Weissman

Categories: New York Real Estate, REO, OREO, Distressed Debt

Hanover Mall in Hanover, MA "Sold" Back to Lender

Yesterday the Hanover Mall in Hanover, MA was sold at auction, back to the lender. Walton Street Capital of Chicago purchased the mall for just under $100M in 2003. The special servicer, CW Capital was the high bidder, the credit bid was $36,700,000---close to 65% less than the 2003 acquisition price.

Read the stories:

http://www.patriotledger.com/news/x1431749232/Hanover-Mall-sold-for-36-7M

http://www.boston.com/business/articles/2010/02/05/hanover_mall_auctioned_for_37m/

Posted at 02/05/2010 04:17 PM by Jason S. Weissman

Categories: ICSC, REO, OREO, Distressed Debt

Weekly thoughts by Jason S. Weissman, for the week of February 1, 2010

“I Say, Follow the Debt!”

Over the last two years, since late Q4 2007, our firm has been actively 'selling' our advisory services to mortgagees/lenders (generally the banking industry). If you are around our office any day, you will hear me calling out, “Follow the debt!” What I mean by this is that in most cases---the lenders are in control, as investor's equity has eroded. Based on Boston Realty Advisors' rough estimates, in Massachusetts alone, we are tracking over 4,500 commercial/land/multifamily properties that are 'underwater' or more technically, that have excess leverage, as the debt is worth more than the assets value. We believe this number of negative equity is about $22B. This makes sense---on a quick and dirty basis, most of the studies indicate that the total size of 'negative equity,' or lender losses, across the US throughout 2012/2013 will be about $1 Trillion. That provides the MA market with a 2.2% market share of the "distressed debt pie."

So, getting back to “following the debt”. We have catalogued the most indepth database in the State of targeted distressed properties. We have identified when these properties have been purchased (as if they were purchased after 2005, they are probably under water). With this information, we have either contacted or met with many of the lenders who hold the paper. On a whole, most have been 'tight lipped' as to what they were going to do. Most lenders are working with their borrowers, and using the all too infamous expression, “kicking the can down the road" analogy. However, literally since mid January, we feel the tone changing. Bankers, investment banks are proactively reaching out to us for Broker Pricing Opinions (BPO’s), portfolio analysis and national lenders looking for referrals to local law shops who category kill in the foreclosure space. Furthermore, our Great Rock Auction Brand (www.greatrock.com) and our REO/OREO disposition department should have a very busy Q3/Q4 by the looks of it now. As the proverbial shit has “begun” to hit the fan for residential foreclosures (since Q2 2008) by our definition, the storm of commercial foreclosures will probably hit in 2011. YES, there are school’s of thought that believe that both inflation and the availability of debt will provide a 'pass' for the commercial debt meltdown, we don’t believe that this will happen.

We believe exactly what is happening in the residential market, will occur in commercial, and probably worse. For example we think residential is in about the “3^rd inning” here in MA. You would think the number is higher, but we tracked only $51.3M (courtesy of MLSPIN) in Bank Owned Property Sales in the City of Boston 2009; that’s it. To keep this stat in perspective, according to the tax records, Deutsche Bank has 501 properties in Massachusetts “on their books” OREO, that had a credit bid value of $118M! With Obama’s referendum on “foreclosure bans” coming to a close soon, the flood gates haven’t opened just yet. If what Bank of America is doing in Nevada, (Releasing 6K homes to the Nevada Marketplace) is any show of the times, watch residential home inventories to increase, further delaying recovery on pricing. http://www.lvrj.com/business/bank-of-america-to-release-homes-81453352.html

In summary, my firm Boston Realty Advisors has geared up to service the banking sector with our high end auction platform, REO Disposition Group, Asset Management and Consulting Services. We are pleased that we are gaining significant traction in this space and adding value to our mortgagee clients. We are active in the MA, RI, NY and CT markets.

I am the Founder and Principal of Boston Realty Advisors. Please check in weekly to review my blog entries. I value client/reader feedback!

Sources from this research are from Public Tax Records supplied by The Warren Group and data compiled by MLSPIN.

Posted at 02/01/2010 01:19 PM by Jason S. Weissman

Categories: REO, OREO, Distressed Debt, Boston Real Estate, Auction, Commercial Real Estate, Lending, New York Real Estate

Company News

Market News

Real Estate 101

Categories