It is becoming more of a preferred strategy to systematically walk away from commercial real estate debt. We have now had two large Wall Street organizations in Morgan Stanley and Tishman and Blackrock Inc. deciding, by voluntary choice, to walk away from their contractual obligations on commercial real estate. Now much has been made regarding the commercial real estate debacle because some $3.5 trillion in commercial real estate debt is outstanding. This number is enormous and many of the bank failures that we’ll be seeing on Fridays this year will come from bad loans in the commercial sector. (more)
Wednesday, January 27, 2010
Commercial Real Estate and Tishman and Blackrock Walking Away from a $4.4 Billion CRE Deal. How to Lose 66 Percent on an 11,000 Unit Property
It is becoming more of a preferred strategy to systematically walk away from commercial real estate debt. We have now had two large Wall Street organizations in Morgan Stanley and Tishman and Blackrock Inc. deciding, by voluntary choice, to walk away from their contractual obligations on commercial real estate. Now much has been made regarding the commercial real estate debacle because some $3.5 trillion in commercial real estate debt is outstanding. This number is enormous and many of the bank failures that we’ll be seeing on Fridays this year will come from bad loans in the commercial sector. (more)
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