CHICAGO-Business consultant MorrisAnderson has formed a jointventure with Northbrook, IL-based Frontline Real Estate Partners tocomplement each other for new customers. MorrisAnderson has wantedto jump into the real estate industry, and CRE advisory firmFrontline, which has specialized in distressed assets, can findproperty solutions.

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“Every business has real estate issues,” says Mitch Kahn withFrontline. “Even washing machine firms have properties to dealwith.”The partnership was already working together before being anofficial JV, he tells GlobeSt.com. Frontline has joinedMorrisAnderson on such projects as the restructuring of theMinneapolis-based Granite City Food & Brewery leases, providingexpert-witness testimony on behalf of the bankrupt Dime Building inDetroit, and consulting on the Opus Northwest restructuring.

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Dan Dooley, CEO of MorrisAnderson, said that it will be good toadd knowledge of distressed asset management and disposition to hiscompany’s services list. “The distressed real estate market willremain active for the next few years,” he said in a statement.

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Kahn says though there hasn’t been a flood of distressedproperties, as was expected because of the previous recessioncycle, there has been indications that sites are starting to move.“In the past 120 days, we’ve seen certain categories of assetsbeing priced aggressively,” he says.

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However, the Kahn says the spread is still too wide, the spreadof what a good asset will go for as compared to a few years ago,and what an empty building will go for versus a few years ago. “Idon’t think we’re going to see a substantial comeback for awhile,we’ll be mostly hanging around the bottom for a couple of yearsuntil we see better job growth,” he says.

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