(Carl Cronan is editor of RealEstate Florida.)

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BOCA RATON, FL-Locally based Portfolio Property ManagementGlobal LLC has established a new group that aims to serve banks andother lenders with distressed, foreclosed and real estate ownedproperties. The new initiative, dubbed PPM-REO, is especiallygeared to local and regional institutions with properties worthbetween $15 million to $20 million in smaller markets in theSoutheast and Midwest, as well as California, Arizona andNevada.

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Marsha Bass, president of PPM Global, says the company willoffer its usual slate of property due diligence and analysisservices, along with handling deferred maintenance issues that cancause value and tenant rolls to slip. She believes the need for theadded service will increase in 2009, with real estate value lossesestimated to grow into the hundreds of billions of dollars.

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"If we were able to manage a sliver of that, it would certainlykeep us very busy," Bass tells GlobeSt.com. "The scope and themagnitude are so large that it is difficult to quantify."

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Even before the keys to buildings are turned back over, Bassstresses that banks need to act quickly to address REO while valuesare still near par with loan values. This is especially importantwithin suburban or secondary markets outside major metropolitanareas, where the anticipated federal bailout program isn't expectedto trickle down, she says.

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While much-larger commercial real estate organizations havealready formed distressed assets divisions to help major financialinstitutions, Bass points out that smaller markets are overlookedas not being worth the effort. "We're at the front end of thatgame," she says.

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Established in 2005, PPM Global manages 3.4 million square feetof commercial real estate valued at $4.3 billion in Florida and sixother states. The firm conducts detailed analysis of the physicaland financial condition of buildings to determine what is requiredto preserve or increase a property's value. "We look at everythingfrom the roof and HVAC systems to ADA compliance and the stripingin the parking lot," says John Guardiola, the firm's engineeringdirector.

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PPM Global has also hired David Oddo as executive vice presidentof business development. The 20-year real estate industry veteranand William & Mary College graduate has extensive experience invarious commercial property and asset management regimens,including third-party and landlord representation. He is also aLEED-accredited administrator for the US Green BuildingCouncil.

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