X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-Four Washington area firms are partnering to form a distressed asset consultancy called Distressed Asset Recovery Team. The four companies are Beers and Cutler, Delta Associates, Fore Consulting, and BlackwellAdvisors. The companies will still maintain their separate operations; DART will be a stand alone endeavor that leverages the principals’ skills and client contacts, Kevin Smith, founder and president of Blackwell Advisors, tells GlobeSt.com. DART will offer debt restructuring services, investment advisory services, valuation services, litigation and dispute resolution services and disposition services.

Principals from the four firms decided to embark on this offering because they realized they have complimentary skills–as well as a large number of borrower and lender clients that either have or will have distressed CRE assets, Greg Leisch, CEO of Delta Associates, tells GlobeSt.com.

He declines to discuss client specifics, such as contracts in the pipeline, other than to say the concept has been well received by each company’s respective client base. DART will be national in scope, although more than likely it will have a large number of DC area-based clients, given that the principals are based here. But not all clients will be local, Leisch says. “I was just on the phone with a New York bank that has an asset outside of Washington and that is not atypical of what we are doing.”

DC has survived relatively unscathed from the credit crunch and recession thus far–and will likely recover sooner than most markets, Leisch says. But there are definitely rocky times in store for the market: Leisch estimates that the DC area will see $1 billion in commercial real estate defaults by the end of Q1, primarily by developers that were unable to refinance. Currently a miniscule $350 million of assets have defaulted. By the end of the year, that number could reach $4 billion. Leisch bases his estimates on proprietary Delta Associates research.

Condos, multifamily and grocery-anchored retail will be the first to recover, Leisch says. Office and hotels will be the last, he predicts, some time in 2013.

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.