Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-Real Estate Roundtable CEO DC’s Real Estate Roundtable has been holding regular conversations with the Treasury Department and the Federal Reserve Bank as the two institutions feel their way through this economic and credit contraction. That makes CEO Jeff DeBoer the perfect source to navigate through the alphabet soup of acronyms that have come to represent the many government initiatives aimed at jumpstarting the economy. DeBoer was one of the keynote speakers at RealShare Washington on Wednesday, where he provided an assessment of what the government is doing–and what it will hopefully do in the future.

TALF–the Term Asset-Backed Securities Loan Facility–is now underway–in fact the New York Fed has decided to extend the subscription period for funding by two days. DeBoer is “very bullish” on TALF and the impact it will have on lending and credit. The Roundtable has been–and still is–engaged in “very constructive conversations” with the Fed and Treasury on making changes that will assist CRE. For instance, a big concern is the three-year financing term in TALF. Most CRE loans are five years minimum. The Roundtable would like to see TALF reflect that.

The details of another government program–the Public Private Partnership Fund, so so-called Bad Bank–are expected to be revealed in the next few days by the Treasury Department. DeBoer had less information to provide about that, except to say that it is likely to be “a few funds” set up which will bid against each other for the assets. It will be Treasury’s road show though; DeBoer did not have details to share on the funds’ nuts and bolts that are key to execution.

DeBoer also pointed to the Cancellation of Debt provision in the stimulus bill, which will provide some relief to CRE borrowers and which he described as “very stimulating” for CRE. The stimulus bill allows commercial loan borrowers to defer the tax for five years. Otherwise, renegotiated or forgiven loans would be immediately taxed as ordinary income.

Negotiations to relax mark-to-market rules, though, have not been a fruitful, he said. The SEC and FASB are considering this admittedly controversial move, putting out for comment a proposal that would redefine what a market with no activity should be. The changes and momentum are not as strong as DeBoer would like to see–at least compared with actions taken by the Fed and Treasury–but, he said, “at least they are moving in the right direction.”

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?


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

Get More Information


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.