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As Vorando Realty Trust and Developers Diversified Realty seek help from the Term Asset-Backed Securities Loan Facility (TALF), but respondents to last week’s GlobeSt.com Quick Poll aren’t in favor of such a move. A 61% majority of readers indicate that they “are wasting their time trying” while 39% think they should get TALF funding. Dale Scott, senior executive vice president of Deerfield Beach, FL-based Sikon Construction Corp. and state director of the International Council of Shopping Centers, sees plenty of retail REITs suffering in Florida and believes some sort of federal relief is needed to save otherwise winning developments.

“The value of assets has gone down so much that you’re in a situation in which loans are coming due and the gap in loan-to-value ratios has gotten bigger, so the only thing the owners can do is come up with the cash in between. In many cases, cash is just not available to developers.”

“Some kind of program has to be put into place to address the amount of these loans that are coming due over the next several years, and how much of that is coming due is confusing, but it is very substantial. Some of the pressure has to be taken off the companies to allow them to refinance these loans as they come due.”

“Pursuing the availability of TALF funds is going to really help this end of the economy and this industry. The retail sector has taken just a tremendous hit and the REITs have performing properties, but their valuations have come down. Where there is a vehicle like TALF available, that is at least part of the answer.”

“It’s very difficult to understand the long-term effect of all this, but in the short term there are some companies that have some really serious problems. They are good companies that didn’t do anything wrong; they were just dealing in the market that was available to them.”

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