CBRE already provides all of the services required to servicedistressed real estate throughout an asset's life cycle and hasprofessionals throughout the company who are already working onsuch assets, Levy notes, but the new group "will bring them underone umbrella because we think that's the best way to serve bothnational and regional accounts." The new group has the capabilitiesto service both REO properties and loans that have not fallen intoforeclosure. "In addition to skills regarding owned real estate, wealso have a very large subsidiary that manages loans, and a largeloan sales practice, so whether it is the whole loan or an REOasset, we have the resources to service the asset," Levy pointsout.

Most of the clients of the new group initially will be largenational and regional financial institutions, Levy says. Hedescribes CBRE as well-qualified to service assets for these largenational and regional firms because the Los Angeles-based companyoperates service platforms that rank as the largest or one of thelargest in every facet of services required for addressing theproblem of distressed assets.

Besides financial institutions, the new group's clients willinclude other entities focused specifically on distressed assets,such as special servicers and bankruptcy specialist firms. Amongthe services CBRE offers that are required by owners of distressedassets are recapitalizations, distressed loan sales and workouts,asset and portfolio valuation, asset enhancements andrepositioning, cost segregation for increased after-tax cash flow,surplus space disposition and portfolio optimization.

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