RREEF and Snell Default on Torre Plaza in Cupertino
October 1, 2009
RREEF and Snell+Co. have defaulted on Torre Plaza in Cupertino. The 93,000 square foot asset was picked up by Snell and RREEF last August for about $29.2M. The 3-story, class B asset sits on about a 180K SF parcel. The original loan amount was for $24.5M, and RREEF is about $686K back on the note [...]
Read More >>Fremont Marriott In Default
October 1, 2009
The 357-key Marriott Fremont has defaulted on a $38.5M loan. The asset, owned by Everest AEW Fremont LLC is about $441K back, on the loan which was originated in May 2007.
Read More >>Luxury Hotels at Risk – Bloomberg Video
September 24, 2009
We’ve already seen numerous defaults in luxury hotels in San Francisco, some strategic defaults, others out of pure distress. Nonetheless, the pressure is mounting. We’ve been at a point now where RevPAR has been under immense pressure for quite some time, coupled with significant speculative acquisitions which took place over the past few years by [...]
Read More >>More Good News From Tishman
August 25, 2009
Standard & Poor’s has downgraded the credit rating of Tishman Speyer’s affiliate in Washington D.C. to D from CCC. In the world of debt, D means death. The debt is backed by a portfolio of 26 properties with 5.5 million square feet that were formerly owned by CarrAmerica Realty Corp. and were purchased from Blackstone [...]
Read More >>$2.2T of US CRE At Risk of Default
July 29, 2009
About $2.2 trillion of U.S. commercial properties bought or refinanced since 2004 are now worth less than the original price, raising the threat of more foreclosures, Real Capital Analytics said. Prices have fallen so far that about $1.3 trillion of properties have either lost their owners’ down payment or are close to it, Robert White, president [...]
Read More >>Nervously Watching Delinquencies
May 13, 2009
An article in the LA Times today sheds light on the mounting troubles at regional banks. Over the past several years a lot of smaller regional banks got themselves heavily entrenched into financing commercial property and construction. A number of banks have already gone under, but many more are just beginning to feel the pain. [...]
Read More >>Fitch: Commercial Defaults to 4% by EOY 2010
April 28, 2009
Fitch analysts anticipate that commercial mortgage default rates will continue to increase this year. As of the end of the first quarter, defaults and payments late beyond 60 days stood at about 1.53%. Fitch has indicated that this number could reach 4% by the end of 2010. Additionally, the amount of mortgages under the care [...]
Read More >>Banks Bracing For CRE Defaults
March 23, 2009
An article in Bloomberg this morning provides some additional detail on bank exposure to commercial real estate. Most of the banks seem ready to take on the losses, but they don’t seem too worried, which is quite reminiscent of the early days of the crisis in the residential sector. According to the article: The country’s [...]
Read More >>Tenant Concerns About Landlords Sweeping The Market
March 13, 2009
About a week ago we wrote a post on tenant’s increasingly becoming concerned with the financial condition of their landlords. The SF Business Times today featured an article covering that very same topic. The article touched on non-disturbance agreements, as well as tenants seeking to have landlords put Tenant Improvmenet money in escrow accounts to [...]
Read More >>Tenants Concerned About Landlord Financials
March 4, 2009
The NYT had an article yesterday about tenants scrutinizing landlord’s financials as a precaution against the property owners getting into financial trouble or losing the building to the lender. We’ve discussed in extensive detail over the past year how deteriorating commercial rents, and an increasingly difficult (or impossible for many) lending environment is putting unprecedented [...]
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