| Posted by david on February 25, 2010 |
Before I go into this blog, let’s clear one thing up…real estate trends and markets are local. Yes, there may be reports that the overall housing market has decreased over the last few years and that vacancy rates are up in office/retail…but every market is different. So if your landlord is charging you $2.50/sf, someone else a few blocks 
away in the same industry may be charged $1.50/sf. So when reports come out that the commercial space on the whole is in trouble, you must take that with a grain of salt.
So, make sure you ingest that grain of salt. An article in the Washington Post reported that NAR said flat out “the commercial real estate market is not expected to recover this year, with vacancy rates set to rise and rents forecast to fall.” (http://tinyurl.com/yaaletw) Again, this does not apply to every scenario but it still should be paid some attention. I’m going to go a little further…with the rise of online retailers such as Amazon and Overstock, physical retail shops will soon become vacant. My suggestion to them is to get some serious web presence if they still wish to be a player in their respective industries. Retail companies need to realize that they are now targeting Generation Y and Z – the two most interactive generations we’ve ever seen. If a retail company doesn’t have a web presence, they will fail. This article also stated “In retail, vacancy rates are expected to rise slightly to 12.7 percent from 12.4 percent. Average retail rent is forecast to dip 2.4 percent this year.” I expect the vacancy rate to increase and rent to continue to fall in 2012.
Why is this important? Banks who hold these commercial real estate notes, should really consider getting them off their books and use a company like Commercial Note Brokers to help with the process. The retail sector is simply one sector the commercial industry. Other sectors are being negatively affected as well by this recession. Again, this does not apply to every commercial real estate property but these numbers should not be overlooked.
| Posted by david on February 20, 2010 |
The nations capital is quite an amazing place. When one thinks of DC – or at least me – the thought of of Elephants and Donkeys battling it out in suits over health-care, abortion, immigration, scandals whatever else the news seems to report as important surfaces the mind. Born and raised in DC, I have seen the numerous changes that has swept our beloved city. Over the past few years, DC has become a mecca for urbanization – high rise condo developments, new restaurants, museums, hip neighborhoods and culture. If you have read Dan Brown’s new book – The Lost Symbol – you will also learn about the history and architecture of some of the DC buildings in more detail. DC, all in all, seems like a pretty cool place to live.
I read an article recently in the Washington Post (http://tinyurl.com/yf638os) that suggests that DC may be heading for a foreclosure crisis. Not a residential foreclosure crisis but a commercial foreclosure crisis. Scary? Yes. Should banks worry about the number of commercial notes that they have on their books? Definitely. Can this great city get through this mess? Absolutely.
Like every other major city in the country, DC has some commercial real estate properties that are not doing too well. Either some of the businesses who are in these commercial properties have gone belly up or the value of the property has simply decreased too much that the value of the commercial note is worth more than collateral…and that’s not good. This article goes into depth about certain properties selling for millions less than what they were purchased for and I suggest you read it in full. Banks who hold these commercial notes should look to start unloading them fast if they wish to continue to stay in business. This is by no means a quick and easy recovery. Some banks will be foreclosed upon by the FDIC and some will survive. I can’t predict the future but it will definitely get a little messy before the market adjusts itself.
| Posted by stuart on February 19, 2010 |
Commercial Note Brokers announces $8.9 Million in Performing and Non Performing commercial real estate notes for sale
Based in Broomfield, Colorado, Commercial Note Brokers (CNB) is proud to announce the offering of $8.9 million in performing and non performing commercial real estate notes for sale. These properties are all located in Colorado and consist of a Medical Office building, car wash, commercial raw land and two unique properties.
At this time the Medical Office building has just become non performing, but may become performing again with the signing of a pending lease. The other properties are all performing at this time.
Register as a note buyer with CNB
In order to view detailed information about these or other particular properties, please register on our site and let us know exactly what you are looking to purchase and where. We have a great number of properties that can not be advertised on our site due to specific agreement with the bank selling the notes, but that are available to be matched to buyers that have expressed an interest in that type of real estate note.
Get on our hot list today! Be the first to know about new commercial real estate notes for sale as they become available. All you need to do is to register as a buyer and let us know
what you are looking for so we can show you what is available in your area.
| Posted by stuart on February 18, 2010 |
Commercial Note Brokers Receives $23 million in non performing notes for sale
Commercial Note Brokers, a distressed debt brokerage for banks looking to sell and investors looking purchase non performing notes, is proud to announce the acquisition of approximately $23 million in non performing notes for sale. These non performing commercial real estate secured bank notes are primarily secured by first deeds of trust and valued between $200k and $4 million on individual notes. Some of the notes will be bundled in cases where there are related borrowers and/or projects.
The commercial real estate securing the non performing notes ranges from raw land, office condos, multi-family developments, to office buildings, etc.
Specializing in Individual notes, representing both buyers and sellers
At Commercial Note Brokers we specialize in marketing individual commercial real estate backed notes that are either performing or non performing. We represent both note buyers and note sellers on a contractual agreement basis. Our team is unsurpassed in online marketing utilizing both SEO and Social Media in addition to matching our database of potential buyers and sellers.
Bank note sellers
If your bank is considering selling some real estate secured loans and you are just getting started learning about the process or wondering how it all works, please give us a call, we’ll be happy to help.
Bank note buyers
Due to the sensitive information about the participants in the note buying and selling market. All buyers will need to register on our site, sign our confidentiality agreement, and provide information that we deem, in our sole discretion, to be sufficient before we allow access to
notes for sale.
Many notes, buyer and potential notes for sale cannot be advertised on this site even with buyer viewing restrictions due to bank sensitivity. In these cases, if you are seeking specific types of notes to purchase, please register and contact us directly so that as private situations arise we can directly cross match new opportunities to potential buyers.
thank you,
Stuart
Commercial Note Brokers
| Posted by stuart on February 12, 2010 |
Congress warns of Commercial Real Estate failures coming
According to an article by the NY Times that summarizes the Congressional Oversight Panel report on Distressed Commercial Real Estate Loans, next year could mark the beginning of a huge wave of troubled commercially backed real estate loans affecting local and regional banks to the tune of $300 billion dollars. The amount of Commercial lending made in the last decade totaling almost $1.4 trillion dollars will require refinancing between 2011 and 2014. Nearly half of these loans are currently ‘underwater’, meaning the property is worth less than the amount owed on the remaining loan balance. Unfortunately, it’s mostly the community banks that are affected by this as the largest 19 wall street bank holding companies are classified as having a CRE concentration.
Commercial lending seriously affected
This amount of bad debt could seriously hinder the ability of banks to lend commercially, as just about every Commercial Real Estate Broker in the country knows. Right now, to get a commercial property financed takes cash flow, equity and basically the ability of the borrower to prove that they don’t need to borrow the money. The Congressional Panel found “a significant wave of commercial mortgage defaults would trigger economic damage that could touch the lives of nearly every American.” When commercial properties fail, it creates a downward spiral of economic contraction: job losses; deteriorating store fronts, office buildings and apartments; and the failure of the banks serving those communities. Because community banks play a critical role in financing the small businesses that could help the American economy create new jobs, their widespread failure could disrupt local communities, undermine the economic recovery and extend an already painful recession.
The time is now for community and local banks to dispose of their distressed or soon to be distressed commercially backed notes.
