As reported in the Los Angeles Times, research firm Real Capital Analytics found that 263 Los Angeles commercial real estate properties totaling $4.5 billion were in default, foreclosure or bankruptcy at the end of June.Nationwide, troubled commercial real estate properties number over 5,300 properties valued at more than $108 billion.
What's to blame? Excessive leverage. When will it get better? No time soon - this could be the early stages of a decline.
These troubled properties will continue to impact both new financings and re-financings of commercial real estate for a while. Commercial real estate bridge loan lenders are having a field day and opportunistic investors with hordes of cash are overwhelming distressed owners having to sell.
As for the banks holding some of these properties in their workout departments or as REOs, it is impacting their ability to make business loans for working capital. Banks are still saying "no" to new business loan opportunities and in some cases, saying "go" to existing companies on maturing lines of credit.
Need help finding the right lender for your commercial real estate bridge loans or for business working capital loans? Read "Matchmaking for Business Loans" and give me a call!
Tags : commercial real estate loans , commercial real estate , California , Los Angeles , real estate bridge loans , private money loans
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