Distressed Loans & Properties for Sale
…prices starting at 60% below Current Market Value.
Due to the Great Recession, commercial real estate values have declined substantially. As a result, there are now opportunities to acquire commercial non-performing notes on Office Buildings at great discounts. Acquisition discount percentages can vary widely dependent upon the bank involved, the type of property and the location of the Office Building. Below are some of the typical acquisitions for recent Office Buildings transactions:
(NOTE: past results are no guarantee of future opportunities in this dynamically changing market)
Note Purchase Price to current FMV ratio: 75% to 40%
Acquisition Price to UPB ratio: 90% to 25%
Note Purchase Price per sq ft: $40 to $80
Below are some typical examples of recently transacted Office Building notes:
CRE Note Exchange maintains a steady inventory of Banks and other financial institutions that are in temporary need to dispose distressed commercial loans, as well bank owned properties throughout the Nation. As we uncover these distressed assets, we present these opportunities to our qualified and registered buyers who are seeking Office Building investments in their area of coverage. Distressed commercial Office Building loans typically yield a better discount to market value compared to buying bank owned Office Buildings. Some of the reasons for this are as follows:
- When selling the Note the Bank saves money by avoiding foreclosure and legal fee’s.
- Banks that are need to raise cash quickly, can liquidate a non-perfoming commercial loan much faster, than the time required to file a notice of default, foreclosure and then market subject property for sale, and close.
- Selling a Note allows the Bank to avoid the cost associated with property ownership.
There are two basic types of distressed commercial notes. One form 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, or the bank simply needs to liquidate the loan. Typically, in either of the above scenarios, the Unpaid Principal Balance (UPB) on the current loan is usually more than the Current Market Value (CMV) of the subject property.
CRE Note Exchange does not list on this website live distressed assets currently available for sale, due to privacy concerns of the note selling banks. We also 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