WASHINGTON, DC—Refining is plentiful, they said. Capital iseager to invest, they said. The wave of debt maturities won't havea problem securing money to recapitalize, they said. So why did onelocal office fail to find refinancing while a portfolio of retailassets will likely come through its current difficultiesunscathed?

Following are two separate deals that went sour. One will likelybe okay in the end; the other has made a buyer of distressed loanshappy at least. One asset is a vacant suburban office, which ofcourse explains volumes. But the retail portfolio is also largelylocated in suburban locations.

It wasn't a foregone conclusion that the suburban office wouldhave failed to find financing. It is not easy, but suburban officesare still finding tenants and buyers and financing. In the end, thestories are illustrative of the elasticity of the refinance market,still, even at this point of the cycle. It is also illustrative ofits limitations.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.