Mary Wenke, Arapahoe county commissioner, says the Radisson foreclosure is the first large commercial property she has seen since taking the job half dozen years ago. Last year was the worst year for foreclosures since the record set in 1988, as the market reeled from a poor economy, a crash in oil prices, overbuilding and the 1986 tax law changes regarding real estate.
Back then, a large number of offices, apartment buildings, hotels and retail centers were returned to their lenders or taken over by the RTC, the Congressionally created entity to dispose of the assets of failed savings and loans.
However, during this go around, almost all of the foreclosures have been residential homes--a trend Isenberg doesn't see this ending any time soon. Despite the Radisson's financial woes, Isenberg believes it is a unique situation and does not signal the onslaught of lenders acquiring commercial properties. Indeed, the hotel market is the strongest since Sept. 11, and Isenberg should know: his firm was created on the advent of the tragic day. Sage prospered by becoming an expert on workouts, taking over individually failed projects, as well as large portfolios and bringing them back to profitability.
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