Whether you call it extend-and-pretend or delay-and-pray, the strategy has become a favorite of banks holding too many CRE loans that could suddenly lose value. Nothing shocking here, but there's been a surfeit of sweeping themes and fewer details of banks trying to avoid putting pressure on their balance sheets.

The New York Times has pulled together some specifics as some big banks look to offload portions of commercial real estate portfolios to avoid losses when office property owners can't pay off mortgages.

"The banks know they have too many loans on their books," Jay Neveloff, head of Kramer Levin's real estate practice, told the Times. He said that some institutions are making discrete inquiries to see how great a discount they'd need to offer for buyers to pick up the worst of their lots. "The banks are going to a select number of brokers, saying, 'I don't want this public,'" he said.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.