Defeasance Decision Checklist 

Loan defeasance is an option for many commercial real estate owners. The following checklist can help property owners when making a defeasance decision. 1. Determining eligibility. Do the loan documents require defeasance in order to obtain a release? Has the

It's a Mad, Mad, Mad, Mad Market 

A 1963 classic comedy, &ldquo It&rsquo s a Mad, Mad, Mad, Mad World&rdquo follows the wacky pursuit of $350,000 in stolen cash. The film opens with a colorful group of strangers stopping on a desert highway to help bank robber

Capturing Capital 

The robust economy, a proliferation of high tech businesses, and Americans' growing affluence have driven commercial real estate's momentum for the past five years. Supply and demand generally are in equilibrium throughout the country, with pockets of actual shortages in

Both Sides Now 

In today&rsquo s still dodgy economic environment, it is more necessary than ever for commercial real estate borrowers and lenders to take some key steps before approaching loan restructuring negotiations. Neglecting this critical prep work can scuttle your chances of

Bank Shot 

As commercial real estate loan defaults spike to the highest level in 20 years, a seismic shift in control of real estate assets is taking place &mdash from owners and borrowers to lenders and investors. Almost every active provider of

Community Banks Step Into a New Role 

Because of the existing credit crunch, community bankers now have the opportunity to look at good loan deals with high profile companies willing to consider a banking relationship with a small community bank. With the lure of highly leveraged, low

CMBS Ups and Downs 

The commercial mortgage backed securities market is relatively young, having yet to complete its first decade. The market began in the early 1990s when the Resolution Trust Corp. issued CMBS to enhance its proceeds from the bulk sales of commercial

Ready for the Rebound 

Today's debt market is highly competitive Hundreds of players are trying to provide debt capital to commercial real estate in an environment that has very little product. This lack is due to low mortgage turnover little debt was issued in

The Lending Scene 

Commercial real estate’s slow but steady recovery after the downturn has opened up a variety of “new but old” options for financing commercial properties for the remainder of 2011. In the primary markets, a growing equity investment appetite and new

Drop the Puck! 

As a native Minnesotan and a Minnesota Wild fan &mdash with a son who plays hockey &mdash I can&rsquo t help but view the current real estate investment market as a financial hockey game. Buyers and sellers are squaring off

The Lending Landscape(1) 

Although too much money chasing too few deals still holds true in today's commercial real estate market, the playing field is changing. The Federal Reserve Board continues to hike short term interest rates, which, coupled with anxiety over the anticipated

Lenders Move Full-Speed Ahead 


Greater Access 

After an extended period of worry free financing thanks to low interest rates, the lending environment finally is beginning to tighten. Rising interest rates have ushered in a new mindset among lenders and investors, yielding such factors as downward pressure

Breaking Down Defeasance 

CMBS borrowers should understand the prepayment process. During the last cycle, commercial mortgage backed securities lending gained in popularity, culminating in a frantic pace of origination between 2005 and 2008. During that period, many borrowers went through loan defeasance. But for a fairly long stretc

Slow Fuse 
Many sports analogies are being thrown out to describe how close the U.S. commercial real estate market is to its cyclical peak. Regardless of whether fans are keeping score based on quarters, innings, or overtime, time is still left on the clock.
Lenders Look Ahead — Cautiously 

As loss rates in commercial real estate loans plummet, U.S. banks are once again competing to lend the funds that complete the deals. Commercial real estate lending is strong, with 2014 year end loan balances matching the last peak market