Commercial Real Estate Restructuring Revolution: Strategies, Tranche Warfare, and Prospects for Recovery
As of the writing ofCommercial Real Estate Restructuring Revolution: Strategies, Tranche Warfare, and Prospects for Recovery, one in four homeowners is underwater, and one in seven is delinquent on their mortgage payment. But at least the worst is behind us. Or is it? At the end of 2008, although U.S. investment in commercial real estate (CRE)—office buildings, multifamily rental properties, retail stores and shopping centers, hotels, hospitals, warehouses, factories, and flex spaces—totaled $6.4 trillion, it is nearly all leveraged with mortgage debt, and by 2014, $1.4 trillion of CRE debt will come due. Even worse than homeowners, 50 percent of all CRE projects are underwater—trillions of dollars worth of CRE capital investment will be lost in this cycle. Written by attorney Stephen Meister, a nationally recognized name and highly respected voice in real estate,Commercial Real Estate Restructuring Revolutiondiscusses the impending tsunami of CRE foreclosures, how it will coincide with Subprime 2.0, and what you need to do now to prepare. Meister details:The history of the commercial real estate capital marketsThe cause of the impending CRE crisis, including the subprime mortgage meltdown, debt structures, lender-borrower collusion, and bankruptcy abusesHow consumer purchasing power drives the CRE marketsWhy the multifamily CRE sector presents both risks and benefits not found in other CRE asset classesWhy rent control laws are misguided and damagingWhy the Obama administration's efforts to combat the housing crisis have not only failed but actually compounded the crisisHow banks, in an attempt to pay back their TARP loans so they can get out from under the government's thumb, are currently hiding losses in CREReal reforms that can be implemented today to prevent tomorrow's bubblesThe correction process in the housing market is far from over. With debt maturities for the already beleaguered commercial real estate market fast approaching, the correction process in CRE markets is just beginning, although it's being concealed from the general public.Commercial Real Estate Restructuring Revolutionshows how you can plan for, protect yourself, and profit from the impending CRE crisis.