How to plan for the commercial real estate collapse
Encompassing apartment, office, retail, hospitality, warehouse,
manufacturing, and flex or R & D buildings, commercial real
estate (CRE) investment in the U.S. totaled $6.4 trillion at the
end of 2008. As noted in the February 2010 Congressional Oversight
Panel Report, $1.4 trillion of CRE debt is coming due by 2014 and
half of the CRE projects securing such debt are underwater.
"Commercial Real Estate Restructuring Revolution: Strategies,
Tranche Warfare, and Prospects for Recovery" looks at how we got
into this mess-impacts of the housing crisis, debt structures,
lender-borrower collusion, and bankruptcy abuses-and offers
possible solutions to the CRE crisis. Along the way, author Stephen
Meister: - Discusses how CRE value losses are being driven by
investors' risk adjusted cap rates, not just poorer market
fundamentals- Discusses strategies and emerging trends in CRE
foreclosures, including forced lender fundings, lender attempts to
chill bids and UCC foreclosure tactics and pitfalls- Proposes
legislative solutions and explains how any rebound will require
federal spending cuts, a vast deleveraging and a market clearing
processWith a crashing CRE debt market and the hundreds of
CRE-heavy regional banks destined for failure, getting out ahead of
the curve is essential. "Commercial Real Estate Restructuring
Revolution" addresses how we got here and how you can plan for the
impending crash.
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