Little stigma for commercial real estate owners who default on mortgages

BY ANDREW TANGEL

As tenants cut back on space in a sprawling warehouse in Wood-Ridge last year, the property's owner did what many strapped homeowners have done: stopped paying the mortgage.

By August, the 2.2-million-square-foot site — a former World War II bomber engine factory owned by New York real estate company Cammeby's International Inc. — was in foreclosure. The balance on the mortgage backed by the property: $42.5 million.

Source: 
NorthJersey.com, News, September 19, 2010

Read more: http://moreparks.org/content/little-stigma-commercial-real-estate-owners-who-default-mortgages

 

Commercial real estate problems lead to latest bank failures: Trepp

by JON PRIOR

Troubled commercial real estate loans brought down five of the six bank failures reported by the FDIC over the weekend, according Trepp, an analytics firm.

There were six bank closings over the weekend, totaling 126 for the year. The Federal Deposit Insurance Corp. estimated the six closings this week to cost the Deposit Insurance Fund (DIF) a total of $347.6 million.

Source: 
Housing Wire, Home, September 20, 2010

Read more: http://moreparks.org/content/commercial-real-estate-problems-lead-latest-bank-failures-trepp

 

L.A. real estate mogul indicted Federal grand jury accuses Ezri Namvar of wire fraud related to sheltering proceeds.

By Stuart Pfeifer and Robert Faturechi

Los Angeles real estate mogul Ezri Namvar, an Iranian immigrant who amassed and then lost billions of dollars of commercial real estate holdings, has been indicted on wire fraud charges, his attorney said.

Namvar, former owner of such high-profile properties as the Marriott hotel in downtown Los Angeles and the Cal Neva resort in Lake Tahoe, was accused of five counts of wire fraud related to a company, Namco Financial Exchange Corp., that sheltered proceeds from real estate transactions, said defense attorney Marc Harris.

Source: 
Los Angeles Times, Business, September 23, 2010

Read more: http://moreparks.org/content/la-real-estate-mogul-indicted-federal-grand-jury-accuses-ezri-namvar-wire-fraud-related-shel

 
 
 

Hedge Fund Crackdown May Snare European Real Estate Investors

By Chris Bourke

Europe’s commercial real estate owners, saddled with 1.9 trillion euros ($2.5 trillion) of debt, may be forced to make billions of euros in cash payments under planned laws that would treat them like hedge funds.

Source: 
Bloomberg, Real Estate, September 23, 2010

Read more: http://moreparks.org/content/hedge-fund-crackdown-may-snare-european-real-estate-investors

 

Office leasing in D-FW still in negative territory

By STEVE BROWN

The North Texas employment market has turned the corner this year, but companies are still holding back on office leasing.

Through the first nine months of 2010, net office leasing in the Dallas-Fort Worth area declined by about 700,000 square feet, according to preliminary numbers from Cushman & Wakefield of Texas.

Source: 
Dallas News.com, Business, September 28th, 2010

Read more: http://moreparks.org/content/office-leasing-d-fw-still-negative-territory

 

Jobenomics- Commercial Real Estate Debt in the US

By Charles Mosley

Source: 
Newswire, News, October 1st, 2010

Read more: http://moreparks.org/content/jobenomics-commercial-real-estate-debt-us

 
 
 

Proposed changes to accounting rule rankle real estate community

By Danielle Douglas

Proposed changes to an accounting rule, requiring companies to place the expense of operating leases on their balance sheets, is raising alarm within the commercial real estate community. Opponents say the restructuring of Financial Accounting Standards 13, or FAS 13 as the rule is called, might upset debt ratios, making it harder for companies to secure loans. Supporters of the changes, however, say they will make financial statements more transparent.

Source: 
The Washington Post, Business, Capital Business, October 4th, 2010

Read more: http://moreparks.org/content/proposed-changes-accounting-rule-rankle-real-estate-community

 

Will The Commercial Real Estate Debt Cause Another Market Crisis?

If the residential real estate market is having problems, so is the commercial real estate market – perhaps even more so. Commercial real estate properties – like apartments, shopping malls, hotels, and office buildings – were at a peak until 2007 but devalued 36% in the last two years. The real estate market has incurred debts in the past years and may still incur more debts in the coming years.

Source: 
RE Journal Online, October 3rd, 2010

Read more: http://moreparks.org/content/will-commercial-real-estate-debt-cause-another-market-crisis

 

Commercial Real Estate: Crawling Toward Recovery

If nothing else, people who care about commercial real estate in greater Phoenix can take cold comfort in this: the worst is probably over.

But Karl Guntermann, professor of real estate at the W. P. Carey School and author of the ASU-Repeat Sales Indices (ASU-RSI), cautions that renewed good times -- including lower vacancy rates and rising property prices -- are probably several years away. In commercial real estate, Phoenix isn't skipping toward another boom but rather crawling back to normalcy.

Source: 
Knowledge W.P. Carey, October 7th, 2010

Read more: http://moreparks.org/content/commercial-real-estate-crawling-toward-recovery

 
 
 

US cities may have to be bulldozed in order to survive

Dozens of US cities may have entire neighborhoods bulldozed as part of drastic "shrink to survive" proposals being considered by the Obama administration to tackle economic decline.

Source: 
telegraph.co.uk, June 12, 2009

Read more: http://moreparks.org/content/us-cities-may-have-be-bulldozed-order-survive

 

S&P: The Worst Not Over for U.S. Commercial Property Markets

Source: Standard & Poors

The slump in the U.S. commercial property market didn't quite plumb the depths of the downturn in residential real estate, but although there are signs that home prices are nearing the bottom, commercial real estate could fall further.

Source: 
Insurance Journal, Home, News, National News, August 23, 2010

Read more: http://moreparks.org/content/sp-worst-not-over-us-commercial-property-markets

 

Will real estate ever be a 'safe' investment again?

We'll never again see the sort of guaranteed high returns on real estate that defined the last 50 years, say experts. Time to retire the phrase "safe as houses"?

Source: 
The Week, Real Estate Truama, Opinion Brief, August 24, 2010

Read more: http://moreparks.org/content/will-real-estate-ever-be-safe-investment-again