According to several analyses of commercial real estate there isa group of properties valued in total around $2 Trillion whoseloans are maturing in the next 2 to 3 years. Many of theseproperties are “distressed”.
While this looming debt may pose a threat to the recoveringeconomy, it also represents opportunities for much of thecommercial real estate industry – brokers, lenders, equityinvestors and due diligence professionals will be busy as beesworking through the many distressed properties.
The lenders/owners will have several options to resolve theissue. Three possible approaches for lenders and owners areto: 1) foreclose on the loans and sell the collateral, 2) sell theloans at what the market will accept or 3) sell the asset at aloss. These options involve a transfer of propertyrights.
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S. Ira Grossman
Mr. Grossman has 40 years experience years of experience in architecture, construction and due diligence consulting throughout the United States. A respected veteran in the due diligence industry, Mr. Grossman has provided engineering and environmental services to major corporations both as an internal resource and as a third-party consultant.
