Tag Archives: Estate

New Reporting Tool from Realogic Analytics Streamlines Analysis, Lending and Securitization of Commercial Real Estate

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Chicago, IL (PRWEB) October 23, 2008

Recently released Realogic Tools from real estate consultant and software developer Realogic Analytics gives commercial real estate owners, buyers, and lenders an additional instrument for analyzing and managing assets.

Realogic Tools merges the wealth of Argus data with the power and ease of Excel, seamlessly extracting Argus data into an Excel-based reporting and calculation engine. This allows for comprehensive analysis, valuation, lending and securitization of commercial real estate.

By combining the functions of both Argus and Excel, Realogic Tools makes critical information available immediately to buyers, lenders, asset managers, and acquisition teams so properties can be quickly analyzed and valuated.

Some key features include:

New York Law School Announces New Master’s Degree in Real Estate Law

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New York, NY (PRWEB) November 6, 2008

New York Law School, one of the oldest independent law schools in the nation, today announced that it will offer an LL.M. degree in Real Estate Law, the only program of its kind in New York City and one of only four in the nation, to begin in the spring 2009 semester.

“The program will allow our students the opportunity to learn about real estate in the real estate capital of the United States,” Dean and President Richard A. Matasar said. “With the launch of the Law School’s Center for Real Estate Studies last year and the addition of four wonderful real estate experts to our faculty, New York Law School is developing a leading presence in the area of real estate law.”

The degree will initially offer two concentrations: one in Finance and Development and the other in Public Policy and Regulation. The program will help students develop the skills needed to excel in transactional practice or governmental affairs related to real property development, and provide them with a rich understanding of the interrelated legal issues, business principles, and policy concerns involved in real estate transactions, development, and financing. The LL.M. is designed to be flexible, allowing full-time students to complete the 27-credit program in one year, while part-time students can be enrolled in the program for up to four years.

The program will be directed by Professor Marshall Tracht, a real estate expert who was recruited from Hofstra Law School to develop the LL.M. degree at New York Law School. Along with Professor Tracht, the Law School has hired three other leading property and real estate professionals to help develop the School’s real estate programs: Professor Richard H. Chused from Georgetown University; Professor Gerald Korngold from Case Western Reserve University; and Professor Elise Boddie from Fordham Law School.

New York Law School’s LL.M. program will offer a wide array of courses taught by a mix of full-time faculty and leading practitioners from the New York City bar, and will emphasize business knowledge and skills such as contract negotiation and drafting, as well as more traditional study of legal principles. In keeping with its focus on the challenges and opportunities of practice in the real world, it is the only program in real estate law to require a course in the complex ethical issues surrounding real estate practice, business, and regulation.

“The LL.M. in Real Estate is part of New York Law School’s continuing emphasis on developing innovative programs that prepare students to excel in the practice of law,” said Professor Tracht. “By allowing students to study advanced topics in law, business, and regulation, and to develop their professional skills through close instruction from leading members of the real estate industry, the LL.M. curriculum will provide the tools needed to practice law at the highest levels, or to make the transition from legal practice to a career on the business side of real estate.”

The creation of the new LL.M. degree comes a little more than a year after the Law School launched its seventh specialized academic center, the Center for Real Estate Studies, dedicated to the study of both the private practice of real estate law and the public regulation of real estate. The Center is led by Professor Andrew R. Berman. The Center and the LL.M. program will be integrated, providing real estate opportunities for J.D. and LL.M. students, as well as events for alumni and the real estate community at large. The LL.M. program will also draw on the offerings of the law school’s Center for New York City Law, run by Professor Ross Sandler, which offers unique courses and programs on governmental policy and land use in NYC.

The primary faculty members affiliated with the new LL.M. program are Professors Berman, Boddie, Chused, Korngold, and Tracht.

Professor Berman, formerly a partner with Sidley Austin Brown & Wood’s New York Real Estate Group, spent nearly 15 years in private practice prior to joining the Law School. He has represented clients in all aspects of commercial real estate finance, including complex financing transactions such as mezzanine loans, preferred equity, and financing intended for securitization markets. He has extensive experience in real estate development projects, the sale and acquisition of real property and mortgage loan portfolios, and complex commercial leasing. He has been teaching at New York Law School since 2002. Some of the courses he teaches are Landlord-Tenant Law, Cooperatives and Condominiums Law, and Real Estate Transactions and Finance.

Professor Elise Boddie joined New York Law School this past year. Most recently, she was Visiting Assistant Professor of Law at Fordham Law School. Her expertise includes land use planning and state and local governmental law. Prior to joining Fordham, she was an Associate Director of Litigation at the NAACP Legal Defense & Educational Fund. She also worked at Fried, Frank, Harris, Shriver & Jacobson, where she practiced corporate litigation.

Before joining the New York Law School faculty this past fall, Professor Richard H. Chused was Professor of Law at the Georgetown University Law Center. He is an expert on an expert on property law, law and gender, copyright law, and cyberlaw. His recently published work includes a work on the treatment of the poor in American landlord-tenant law, a lengthy history of the famous landlord-tenant case Javins v. First National Realty Corporation, and a history of landlord-tenant court in New York City at the turn of the twentieth century.

Professor Gerald Korngold also joined the Law School this past fall, from Case Western Reserve University, where he was a professor and served as Dean from 1997 to 2006. He was a professor at New York Law School from 1979 to 1987 and Associate Dean for Academic Affairs from 1984 to 1986. In addition to many articles, he is the author of Private Land Use Arrangements: Easements, Covenants, and Equitable Servitudes (2004); co-author of two casebooks, Real Estate Transactions (2004) and Cases and Text on Property (2004); and co-editor of Property Stories (2004).

Professor Marshall Tracht will direct the LL.M. program. He teaches Bankruptcy, Real Estate Transactions and Finance, and Advanced Real Estate Financing. He is co-author of a leading textbook on real estate law, a member of the editorial board of The Banking Law Journal, a contributing editor to the Real Estate Law Report, and has written extensively in the areas of real estate development and construction financing, workouts, and bankruptcy. He is also the co-author of Land Transfer and Finance: Cases and Materials. Before going into academia, Professor Tracht practiced in the real estate and bankruptcy groups at Arnold & Porter LLP in Washington, D.C., and clerked for the United States Bankruptcy Court for the District of Columbia.

For more information about the LL.M. in Real Estate Law, please visit http://www.nyls.edu/realestate.

About the Center for Real Estate Studies:

The Center for Real Estate Studies (CRES) at New York Law School provides students with a unique educational opportunity to study both the private practice and public regulation of real estate. Leveraging the School’s location in the prime real estate market of New York City, the Center enables students to gain practical experience in the real estate community and make contacts for future employment. Launched in 2007, the Center offers an extensive selection of classroom courses, advanced seminars, and independent study projects, as well as externships in governmental offices and real estate firms. It also sponsors conferences, symposia, and continuing legal education programs on a broad spectrum of issues. The Center for Real Estate Studies aims to help bridge the existing gap between the private practice and academic study of real estate, and is becoming one of the premier research centers in the country for the study of real estate.

About New York Law School:

Founded in 1891, New York Law School is an independent law school located in lower Manhattan near the city’s centers of law, government, and finance. New York Law School’s renowned faculty of prolific scholars has built the School’s strength in such areas as constitutional law, civil and human rights, labor and employment law, media and information law, urban legal studies, international and comparative law, and a number of interdisciplinary fields. The School is noted for its eight academic centers: Center for International Law, Center for New York City Law, Center for Professional Values and Practice, Center for Real Estate Studies, Center on Business Law & Policy, Center on Financial Services Law, Institute for Information Law & Policy, and Justice Action Center. New York Law School has more than 13,000 graduates and enrolls some 1,500 students in its full- and part-time J.D. program and its Master of Laws (LL.M.) in Taxation program. http://www.nyls.edu

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Commercial Real Estate: A Rose Among Thorns? John B. Levy & Company Finds Few Positives Budding in Today’s Commercial Real Estate Market

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Richmond, VA (PRWEB) April 19, 2009

Conditions that scorched the commercial real estate market in fourth quarter 2008 showed no signs of abating in January and February of 2009, dashing hopes among developers and investors alike that there might be an uptick in sales and refinancing activity in the new year. Market watchers in the crowd longing for the days of 2007 discovered the disappointment of looking at the world through rose-colored glasses.

“Every Thorn Has Its Rose” is the latest in a series of timely, informative podcasts produced by John B. Levy & Company, and it provides clients and analysts with a sobering vision of what they can expect in today’s commercial real estate market. This new podcast is available online at http://www.jblevyco.com.

“Any hint of rosy optimism has been overrun with thorns,” says John Levy, founder of John B. Levy & Company. “Most real estate owners, developers, and investors are beginning to realize that commercial real estate isn’t going to recover in 2009, and probably not in 2010.” He adds, “we’re looking toward 2011.”

Levy offers a couple reasons for his assessment. First, of the top one hundred largest markets in the United States, ninety are still showing job losses, indicating that the current recession is both deep and wide. Jobs drive the demand for multifamily housing, and they create the need for retail and office space. In addition, commercial real estate is a lagging, not leading sector.

“When the subprime financial market was going over Niagara Falls backward in a canoe in 2007,” Levy says, “those of us in the commercial sector were doing just fine. That said, we shouldn’t expect commercial real estate to lead us out of this recession.”

While it’s difficult to be optimistic about today’s market, Levy says there is a rose among the thorns, but it is in the budding stage. First, the federal government is pushing massive liquidity into the commercial real estate market via TARP and TALF, and these programs are starting to show promise. For example, spreads on commercial mortgage backed securities (CMBS) have tightened more than 500 basis points. Levy also believes we might see the rebirth of CMBS securitization by the end of the year, and the prospect of rejoining securitization and commercial real estate is a huge step in the right direction.

“In the meantime,” Levy says, “the biggest problem owners and developers face today is that their loans are maturing and they lack financing opportunities. Almost $ 300 billion in commercial real estate loans is coming due in 2009, and more than $ 200 billion comes from bank loans. This situation creates a major challenge.”

Levy suggests that owners and developers hire experts to assemble a financial package and help with strategy and negotiations. He also recommends that those with properties suffering from negative cash flow avoid using personal cash to keep the note current. Instead, that cash can be used as a principal payment or as additional collateral for negotiations and loan extensions.

Finally, Levy suggests, those with a CMBS loan should ask in writing – not over the phone – for their loan to be transferred from the master servicer to the special service. This strategy is helpful because only the special servicer can extend the loan or offer forbearance.

“Now is not a good time to be out there all alone,” Levy says. “We’re in uncharted waters right now, and a lot of owners and developers need help. This market is dicey.”

Firm Background

John B. Levy & Company, Inc. is a real estate investment-banking firm headquartered in Richmond, Virginia. Since John Levy founded the company in 1995, the firm has structured over $ 3.5 billion in financing for developers and owners of commercial and multi-family projects nationwide, often investing its own proprietary funds into transactions with its clients. Mr. Levy is an expert on commercial real estate financing and the effects of interest rates on commercial real estate markets. He is the originator and author of the Barron’s/John B. Levy & Company National Mortgage Survey, a monthly survey of more than 30 of the country’s largest institutional investors, as well as buyers and sellers of commercial mortgage-backed securities, which Barron’s published for over 23 years. Mr. Levy is also co-creator of The Giliberto-Levy Commercial Mortgage Performance Index (sm), the first and pre-eminent index to measure and analyze the performance of investments in the commercial mortgage industry. Additionally, he is a member of the Board of Directors of Anthracite Capital Inc. (NYSE: AHR), a New York Stock Exchange REIT managed by BlackRock, Inc and a former director of Value Property Trust.

For more information about John B. Levy & Company, please visit the firm’s website at http://www.jblevyco.com or call Andrew Little at 804-644-2000, extension 260.

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Commercial Real Estate: Not Sick, But Not Well — Investors, Developers Await Final Diagnosis of Today’s Commercial Real Estate Market

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Richmond, VA (PRWEB) June 9, 2009 –

Sick? Well? On the road to recovery? The diagnosis is still out on the state of today’s commercial real estate market, according to “I’m Not Sick, But I’m Not Well,” the latest in a series of timely, informative podcasts produced by John B. Levy & Company. This new podcast, which is available online at http://www.jblevyco.com, provides clients and analysts with clear understanding of what they can expect in today’s market.

Sentiment among investors and developers about the outlook for commercial real estate is mixed. On the positive side, the stock market has trended up nearly ten percent since April, and along the way, government loan programs have begun to work. But as previous podcasts from John B. Levy & Company have emphasized, commercial real estate is a lagging indicator. It’s unclear whether the market has hit bottom. And even if it has, there are no signs that conditions are improving, even modestly.

“There’s no doubt about it. We are in the throes of a violent deleveraging,” says John Levy, founder of John B. Levy & Company. “Most of us – and I’m speaking for myself, too – have never seen anything like these current conditions. By the time this is all over, values will have declined some 25 to 40 percent from their peak.”

Having experienced the deleveraging and suffered the loss of value, real estate investment trusts (REITs) are now raising new capital at a frenetic pace. In the past couple months alone, more than three dozen REITs have raised over $ 12 billion. As all this takes place, private developers wait on the sidelines, hoping that values recover quickly.

“I hate to say it, but ‘hope’ is not a business strategy,” says Levy. “What’s happening right now reminds me eerily of what happened in the early ’90s. REITs raised new equity long before private developers determined they should do the same.”

As for the debt side of the commercial real estate equation, there have been no new securitizations since the beginning of 2009. What the market is experiencing is an exceedingly high demand for loan extensions from borrowers who can’t find replacement debt.

“CMBS servers are facing a tsunami wave of loan extensions for maturity defaults,” says Levy, “and most are for six months to a year. By the end of 2009, we expect to see extensions as long as three years, perhaps even five.”

Borrowers need to know that there’s a difference between getting a loan extension from a CMBS server and a bank or life insurance company. A CMBS loan extension requires specific processes and procedures, which makes it important that borrowers work with an experienced mortgage or investment banker. Not doing so puts them at a distinct disadvantage.

“Can borrowers who are requesting loan extensions do so without an experienced mortgage or investment banker? Yes,” says Levy. “But that’s not what we recommend. It’s like going to court without a lawyer. Sure, it might be cheaper but only in the short run.”

Firm Background

John B. Levy & Company, Inc. is a real estate investment-banking firm headquartered in Richmond, Virginia. Since John Levy founded the company in 1995, the firm has structured over $ 3.5 billion in financing for developers and owners of commercial and multi-family projects nationwide, often investing its own proprietary funds into transactions with its clients. Mr. Levy is an expert on commercial real estate financing and the effects of interest rates on commercial real estate markets. He is the originator and author of the Barron’s/John B. Levy & Company National Mortgage Survey, a monthly survey of more than 30 of the country’s largest institutional investors, as well as buyers and sellers of commercial mortgage-backed securities, which Barron’s published for over 23 years. Mr. Levy is also co-creator of The Giliberto-Levy Commercial Mortgage Performance Index (sm), the first and pre-eminent index to measure and analyze the performance of investments in the commercial mortgage industry. Additionally, he is a member of the Board of Directors of Anthracite Capital Inc. (NYSE: AHR), a New York Stock Exchange REIT managed by BlackRock, Inc and a former director of Value Property Trust.

For more information about John B. Levy & Company, please visit the firm’s website at http://www.jblevyco.com or call John Levy at 804-644-2000, extension 237. You may also follow us on Twitter at http://twitter.com/jblevyco.

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R.O.I. Properties Specializes in Helping Commercial Real Estate Investors Buy Bulk REO Properties in Arizona

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Phoenix, AZ (PRWEB) October 2, 2009

R.O.I. Properties, a Phoenix-based real estate firm, specializes in helping commercial real estate investors buy bulk REO properties in Arizona. Buying bulk REO properties creates an enormous opportunity for both the small and large investor.

“Buying REO properties in bulk provides investors with the ability to purchase REO properties at a fraction of the cost in an environment where they could not get anywhere close to the terms and pricing they want on their own,” said Beth Jo Zeitzer, President / Designated Broker of R.O.I. Properties. “We specialize in helping commercial investors meet their needs and avoid the hassles involved in the bulk buying process.”

The size and capitalization of a group brings tremendous credibility to the table since the group can provide multiple exit strategies for the properties. Buyers can invest in REO properties without the hassles of going to auctions, contacting banks, probate sales, estate sales, etc.

According to real estate expert Robert Kline of RW Kline, LLC, there are many advantages associated with investing in commercial real estate in bulk. The first is that preventing retail foreclosures benefits the tenants and their business. The foreclosure process takes months and can result in temporary maintenance, security and insurance problems while the property changes hands. Secondly, the government does not have formal help for commercial loan modifications, although there is money from the Troubled Asset Relief Program to offset losses from bad commercial loans. In addition, the national commercial mortgage debt currently exceeds 3.5 trillion dollars, and two-thirds of securitized mortgages due today have no hope of being repaid in the near term.

Over the past 8 months, from January 1, 2009 to September 1, 2009, there have been a total of 352 commercial REO sales transactions for a total of over $ 1 billion. That is a more than 30% decline over the same 8-month period in 2008, when the transactions resulted in a sales volume of more than $ 1.4 billion (Costar).

For more information about real estate investment opportunities related to bulk REO properties in Arizona, visit ROIPropertiesAZ.com.

About R.O.I. Properties

R.O.I. Properties is a full service real estate brokerage firm specializing in foreclosure properties in Arizona, bankruptcies, probate properties and more. R.O.I. works with banks, lenders, asset managers, bankruptcy attorneys, receivers, fiduciaries and turn around professionals to sell their distressed real estate assets, both residential and commercial.

Contributing Writer: Marcela Houser

Marcela Houser, CCIM, is part of R.O.I. Properties’ Commercial Distressed Assets Division. Marcela has been working in commercial real estate for eight years, with a specialization in retail and office leasing and sales. She is bilingual, and brings a wealth of experience in facilitating transactions with users, owners and investors.

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Bluestone Americas CEO, Charles Nam, Announces the Opening of Bluestone Holdings as its Commercial Real Estate Brokerage Unit

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Los Angeles, CA (PRWEB) March 10, 2010

Charles Nam is proud to introduce the newest subsidiary of Bluestone Americas companies – Bluestone Holdings. Charles Nam will head the company branch alongside William Soady, President of Bluestone America.

Commercial real estate has been experiencing a deep corrective phase, which has been catastrophic to some, yet beneficial to others. I am pleased to be able to provide our clients with enough diversification in the segments of our company. Given their particular needs, Bluestone can offer our clients several options and we can address their requests under the same company philosophy theyve come to know and trust for years. Over the years, Bluestone has not only gained long-term clients, but have become their trusted source, says Charles Nam, CEO.

Bluestone Holdings is a licensed real estate firm in California that provides brokerage services for all classifications of commercial, gaming, office, hospitality and professional properties. Bluestone has found new directions for secure funding alternatives during this period of market correction while making a positive impact resulting in growth for the current economy.

Commercial real estate has been stuck in a neutral position since the recession began. With banks unwilling to lend the funds for investors to participate, the need for alternative resources to buy or sell property will become a reality this year as prices begin to bottom out, said William Soady.

About Bluestone America

Bluestone America is a conglomerate of United States and offshore-based corporations whose focus is asset management, asset based project securitization funding and acquisition of alternative funds. The members of the management and advisory boards of the Bluestone Group of Companies have broad based expertise in financial business development and banking in the Middle East, United States, South Korea, Brazil, Taiwan, Hong Kong, China and other key international financial and business centers.

Bluestones management and advisory board members are multi-cultural representing Asia, South America, North America, Africa and the Middle East. Bluestone America has developed various methods of securitizing asset based long-term real estate development projects using Non-Correlated Longevity Assets. These methods and techniques are proprietary intellectual properties developed and owned by Bluestone America.

For more information on Bluestone America:

Info(at)BluestoneAmericaInc(dot)com

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MBA Commercial Inc. is Now Offering Commercial Real Estate Bridge Loans

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San Diego, CA (PRWEB) June 24, 2010 –

MBA Commercial, Inc. is pleased to announce commercial real estate bridge loans and other short-term financing through its relationships with several lenders.

MBA Commercial provides commercial real estate bridge loan financing for the purchase of either performing or non-performing mortgages, the purchase of real estate assets and loan pools, and participating equity and debt mortgages. Borrowers may acquire vacant or partially leased buildings, as well as condominium sales with release prices and prepayment options. Finally, financing is available for the repurchase of discounted debt by an owner, for example, permitting an owher to short pay an existing mortgage.

According to MBA Commercial CEO Brian Yui, “MBA Commercial’s access to bridge and other short-term loans may help some commercial property owners ride out the storm, while enabling others to participate in the lucrative investment opportunities presented in the current market.”

In addition to its varied loan types, MBA Commercial is able to generate short-term financing solutions on a quick turnaround basis. In many cases, same week financing is possible with a complete loan package. Loan size can range from $ 3M to $ 300M, typically financing up to 65% of acquisition costs. With cross-collateralization of other assets, the loan to value ratio may be higher. Terms vary, with points from 3%-6% and interest rates from 12%-18% depending upon the securitization.

As MBA Commercial, Inc. predicted in late 2009, the wave of commercial foreclosures in San Diego is increasing. Research firm Real Capital Analytics Inc. reported that at the end of March 2010, San Diego County had 120 commercial loans in delinquent or default status, with a total value of $ 1.8 billion. According to Bloomberg L.P., in the first quarter of the year, 24.9% of San Diego’s commercial mortgage backed securities loans were on watch lists as lenders anticipated near-term delinquencies. In light of these and other data indicating growing distress, MBA Commercial is pleased to bring short-term financing solutions to the market at this critical time.

MBA Commercial, Inc. is a leader in San Diego commercial real estate. MBA Commercial offers a turn-key service for property management, leasing, sales and financing. Its new Bridge Loan Division provides short-term financing solutions for real estate investors thoughout the United States. MBA Commercial’s bridge loan division can be reached at 888-248-6222.

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Commercial Real Estate Has the Hotel Sector Begun Turning Around?

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Clearwater, FL (Vocus) July 26, 2010

Data from Smith Travel Research released recently shows U.S. hotel occupancy rose more than two percentage points in the first five months of this year from the same period last year, to 54.7%. However, there is no doubt that many commercial properties such as hotels remain very deeply in debt.

Guardian Solutions, a commercial loan restructuring firm specializing in various segments within the commercial real estate market, has recently helped two such hotels turn matters around despite the struggling economy.

Eventually, the hotel industry will come back, but if a hotel owner is straddled with an untenable balloon payment, or is in default because of the current economic situation, it is imperative that the commercial property owner act aggressively now to keep his property, said Ira J. Friedman COO for Guardian Solutions.

But the overall looming industry debt continues to threaten to undo any recovery the hotel segment is starting to make.

According to research firm Trepp there is about $ 5.6 billion in securitized mortgages tied to hotels coming due this year and next, and about 28% cover properties now estimated to be worth less than their mortgage balances. That makes refinancing those “troubled” loans nearly impossible without the commercial property owners contributing more capital.

Returning to the hotel industry’s boom-time highs may take several years or longer. PKF Consulting Inc., a hotel-industry analysis company, predicts U.S. average rates and REVPAR (revenue per available room) will return to their recent peaks by 2013, but occupancy won’t do so until after 2014. As for property values, HVS, the hotel and leisure research company, forecasts U.S. hotels should regain their 2006 values by 2013.

Some hotel owners may just focus on the first bit of good news they have experienced in two years (slightly improved occupancy rates) but the ones that will survive are the ones that take advantage of this uptick and use it to help restructure their commercial mortgage, and deal with the looming problem sooner rather than later added Friedman.

One group of hotel owners who were not waiting to see if things got better on their own was AllStar Investments, LLC. AllStar was able to renegotiate terms for mortgages for two of their hotel properties with the help of Guardian Solutions.

Guardian Solutions and Mr. Friedman took what appeared to be a hopeless situation for two of our hotels and turned them both around. He negotiated a discounted buy-out of the notes at approximately .60 cents on the dollar, said an AllStar Representative

But the situation is even worse for commercial property owners with hotel loans that are coming due in 2012, many of which were originated when hotel values (commercial real estate values) were much higher than today. Of the $ 5.1 billion in securitized mortgages coming due in 2012, 64.5% currently are underwater, according to Foresight Analytics. Those not generating enough cash to cover their interest payments represent 42.2% of that balance due in 2012.

Friedman added, Guardian Solutions addresses each property we represent individually in accordance with all the issues at hand. Once we are prepared with every piece of relevant information and a realistic game plan, we enter negotiations with the Special Servicer, or in some cases the Master Servicer; our intent is to always secure the best possible terms for the client and address the concerns of the lending institutions.

About Guardian Solutions

Guardian Solutions is the one of nations largest commercial loan restructuring companies and is committed to helping commercial property owners save their properties. The companys knowledgeable mediators are experienced in a variety of disciplines to provide customized restructuring solutions. For more information, visit http://www.GuardianSolutions.org

Contact:

Jamie Sene

Vice President, Marketing

Guardian Solutions

727-442-8833

http://www.GuardianSolutions.org

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Loan Restructuring A Sign Of Hope In A Dismal Commercial Real Estate Industry Forecast

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Clearwater, FL (Vocus) August 9, 2010

Although the U.S. economy appears to be showing preliminary signs of recovery with the stabilization of some large financial institutions, the commercial real estate market continues to be negatively affected by the ongoing decline of home prices, the high rate of commercial loan defaults and an unmoving high unemployment rate. Treasury Secretary Timothy Geithner recently darkened this scenario by warning that unemployment could continue to rise before subsiding.

Jeramie P. Concklin, CEO of Guardian Solutions, a commercial loan restructuring firm based in Florida had this to say, The rate of growth of delinquencies in commercial mortgage-backed securities (CMBS) real estate loans did show some slight signs of moderating in July, but despite that, we are still seeing very high numbers of new distressed commercial mortgages in need of restructuring every week as evidenced by CMBS delinquencies surpassing 60 billion dollars, an increase of 3.11 billion from just the month prior.

A bright spot in this gloomy scenario is surfacing due to the efforts of independent commercial loan restructuring firms such as Guardian Solutions. According to Trepp, a leading provider of CMBS and commercial mortgage data and analytics, a recent trend has emerged that is having a positive effect on CMBS loans due to the increase in loan modifications by lenders. Loan modifications through July of this year already have surpassed those for all of 2008 and 2009 combined. Loan modifications (have) accelerated dramatically in 2010, the Trepp report said. This puts downward pressure on the delinquency number, as troubled loans get resolved and move from the delinquency category.

Based on the successful commercial loan workout results weve been getting for our clients, I can see that the biggest mistake that property owners tend to make is to do delay addressing the issue at the first sign of trouble, or even worse, to try to deal with lenders or special servicers on their own. But that being said, commercial property owners should know that they can take steps to improve their situation by seeking professional help and guidance while the situation is still salvageable; the longer they wait to act, the more difficult their situation becomes, added Concklin.

Commercial property owners who are trying to keep their properties viable are seeking help from firms like Guardian Solutions that specialize exclusively in commercial loan modification. Currently, there are only a handful of specialized firms that hire highly qualified employees, such as accountants, MBAs and real estate professionals to deal specifically with the complexities involved in a restructuring a securitized commercial property.

Guardian Solutions helps commercial real estate owners in distress every day, said Concklin. We are saving all types of commercial properties facing default. But the sooner we get into negotiations, the more options we have available to help. A restructuring plan thats put in place early on usually contains the most favorable terms and achieves the best results. With the dismal forecasts we have for the economy and for the commercial real estate market, its the wise property owners who are taking a look at their assets and preparing now for the eventual market declines.

The technical and legal aspects involved with securing a commercial loan restructure prompts many property owners to ignore their position and grudgingly accept foreclosure rather than save their investment. This can result in more than just losing the property, it can severely damage the borrowers credit and even lead to personal bankruptcy.

About Guardian Solutions

Guardian Solutions is the one of nations largest commercial loan restructuring companies and is committed to helping commercial property owners save their properties. The companys knowledgeable mitigators are experienced in a variety of disciplines to provide customized restructuring solutions. For more information, visit http://www.GuardianSolutions.org

Contact:

Jamie Sene

Vice President, Marketing

Guardian Solutions

727-442-8833

http://www.GuardianSolutions.org

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Despite Economic Uncertainty, Parts of the Commercial Real Estate Market Have Begun to Self-Correct

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Clearwater, FL (Vocus) October 14, 2010

Guardian Solutions, a commercial loan restructuring firm specializing in various segments within the commercial real estate market, has seen a significant increase in the number hotel owners facing imminent foreclosure that are able to save their properties.

This year the number of hotels being sold, as a percentage of investment volume within the CRE property sector has increased from below 8% at the peak of the market to over 10%. But more than one-third of hotel transactions that closed through June 30 involved distress conditions, such as foreclosures, auctions or short sales.

This latest trend is an indication to us that commercial real estate may be finally on the right path to mend itself. Lenders and special servicers that we work with closely seem more willing to restructure, workout or negotiate discounted buyouts than they did in the past; specifically, there was $ 1.29 billion in distressed properties that sold off in the first half of 2010, compared with $ 1.04 billion in first-half 2009, said Ira J. Friedman COO for Guardian Solutions.

Data from Smith Travel Research released recently shows U.S. hotel occupancy rose more than two percentage points in the first five months of this year from the same period last year, to 54.7%. However, there is no doubt that many commercial properties such as hotels remain very deeply in debt and will require a restructuring of some kind if they are to make it.

One hotel owner who was able to save his distressed property with the aid of a commercial loan restructuring firm was Tom LaSalle, owner of LaSalle Management Limited II, who had this to say, From the time they accepted my case until the closing resolution, I found Guardian Solutions to be a very professional, goal-oriented firm that demonstrated a high level of expertise in the financial field throughout our presentations and negotiations. Two months prior to Guardian Solutions closing resolution on my case I could not have anticipated such a positive result.

But the picture is not all wine and roses for the industry; the situation remains difficult for commercial property owners with hotel loans that are coming due in 2012, many of which were originated when hotel values (commercial real estate values) were much higher than today.

The basis to any successful workout negotiation is ensuring that it is a win-win for both the property owner and the lenderthe difficulty arises in creating a clear view of what is at stake for both parties as well as how they both can make the best of a tough situation with the most favorable terms, added Friedman.

According to Foresight Analytics, of the $ 5.1 billion in securitized mortgages that are coming due in 2012, a whopping 64.5% are currently underwater. Those properties not generating enough revenue to cover their interest payments represent 42.2% of that balance due in 2012.

This pending debt foreshadows more turbulent times before any real recovery for the hotel sector takes hold; hotel owners would be well advised to take immediate steps to save their properties through a comprehensive loan restructuring plan sooner rather than later.

While we expect the hotel industry to eventually come back strong, I would advise any hotel owner facing an untenable balloon payment, or already in default to act aggressively now to keep his property by engaging a reputable commercial loan restructuring firm to represent the property, added Jeramie P. Concklin, CEO for Guardian Solutions.

About Guardian Solutions

Guardian Solutions is the one of nations largest commercial loan restructuring companies and is committed to helping commercial property owners save their properties. The companys knowledgeable mitigators are experienced in a variety of disciplines to provide customized restructuring solutions. For more information, visit http://www.GuardianSolutions.org

Contact:

Jamie Sene

Senior Vice President, Marketing

Guardian Solutions

727-442-8833

jvs(at)guardiansolutions(dot)org

http://www.GuardianSolutions.org

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