Industrial and Warehouse
Distressed Loans & REO Property for Sale
…sales prices starting at 60% below Current Market Value.
As a result of today’s Great Recession, some financial institutions are liquidating distressed CRE notes and commercial REO property at attractive discounts. Acquisition discounts will vary from bank to bank, type of property and location. Below are some of the typical acquisition parameters and ratios that have been achieved in the acquisition of distressed Industrial Building notes in the recent past:
(NOTE: past results are no guarantee of future opportunities in this dynamically changing market)
Note Price to Current Value (CMV): 40% to 70%
Note Price to Loan Balance (UPB): 15% to 80%
Note Purchase Price per sq ft: $10/sq ft to $35/sq ft
Below are some examples of recently closed transactions of distressed commercial Industrial note purchases:
CRE Note Exchange maintains a steady inventory of financial institutions that are liquidating non-performing notes, for Industrial and Warehouse commercial properties throughout the Nation. We also uncover little known Industrial properties that have been foreclosed upon, and now bank owned (REO), to be sold at discount. As we uncover these distressed assets, we present these opportunities to our pre-qualified and registered buyers who are seeking Industrial or Warehouse investments in their specified location/area.
Distressed commercial loans typically yield a superior discount, compared to buying bank owned commercial buildings. Some of the reasons for this fact are as follows:
- By selling the Note, Banks save money by avoiding foreclosure and legal fee’s.
- Some Banks need to raise cash quickly, and can liquidate non-performing commercial loans much faster compared to foreclosure, ownership and resale.
- When a Bank sells a Note, they avoid taking ownership to the subject property, thus eliminating costs associated with ownership.
There are two basic types of distressed commercial Industrial loans. One is a non-performing note in which the property owner has stopped making loan payments. The other form of distressed note, is a situation in which the property owner is current on their payments, but the commercial loan term has expired and property owner is unable to retire the debt, or the Bank has determined that they need to quickly liquidate subject loan asset for financial reasons.
Due to privacy requirements of the note selling banks, CRE Loan Exchange does not list commercial assets for sale on this website, and we do not email blast commercial tapes to nondescript investors. Using a secure protocol, we deliver current distressed loans for sale only to our member investors whose purchasing criteria matches the parameters of the distressed assets for sale.
See Acquisitions Trading Desk for more details.
SVP of Asset Management