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Thanks to the Fed, the workout business and restructure business is almost done and people engaged in those endeavors are moving on. The major advisory groups focused on restructuring advice, bankruptcy and related matters are being disbanded and reassigned to other roles. Bankruptcy attorneys focused on real estate are idle and looking for new litigation to occupy their time. Funds and investors seeking distressed deals are struggling to find anything that makes economic sense or is worth buying. Mostly properties are now over priced, too old and costly to renovate, or just badly located and hopeless. If you want exterior corridor roadside motels there are some, but who wants them. Office buildings in very secondary cities that cannot command decent rent can be found, but who wants them unless the price is very low and you are a local operator. In summary, the distressed game is essentially done and now it is mainly foreign capital paying cash at too high cap rates in new York, San Francisco, LA and Washington that drives many large transactions. Other deals are heavily dependant on the Fed keeping rates unrealistically low.

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