Retail

Distressed Loans & Properties for Sale

…prices starting at 60% below Current Market Value.
 

The Great Recessions has provided some unique and attractive buying opportunities in Retail Commercial Real Estate. Acquisition discount percentages can vary widely dependent upon the selling bank, the type of Retail property and the location. Below are some of the typical acquisition parameters and ratios that have been achieved in the recent past:

(NOTE: past results are no guarantee of future opportunities in this dynamically changing market)

Acquisition Price to Current Value: 75% to 40%

Acquisition Price to UPB: 90% to 30%

Acquisition Price per SqFt: $60 to $290

Below are some typical examples of recently transacted Commercial Retail Notes:

• Eastern Pennsylvania, 17,260 sq ft, Current Market Value = $5.2 Mil
  Note Purchase Price = $2.9 Mil, Price per sq ft = $165, CAP Rate= 15%
• Northern California, 32,509 sq ft, Current Market Value = $13.1 Mil
  Note Purchase Price = $7.6 Mil, Price per sq ft = $233, CAP Rate= 13.5%
• South-Coastal Florida, 19,337 SqFt, Current Market Value = $5.9 Mil
  Note Purchase Price = $3.2 Mil, Price per sq ft = $165, CAP Rate 16%

CRE Note Exchange maintains a steady inventory of Banks and other financial institutions that are in current need to liquidated non-performing loans, and other distressed loans for retail commercial properties throughout the USA. We also uncover foreclosed bank owned (REO) properties as well. As these distressed assets become available, we present these opportunities to our qualified and registered buyers who are seeking Retail commercial investments. Distressed commercial notes typically yield a superior discount to current market value (CMV) compared to bank owned properties. Here’s why this is so:

• In selling the Loan the Bank saves money by avoiding legal fee’s and foreclosure.
• Banks needed to quickly raise capital, can liquidate a non-performing commercial loan much faster than foreclosure and resale.
• When a Bank sells a Note they avoid taking ownership and eliminate costs associated with ownership.

There are two types of distressed commercial Retail notes. One form is a non-performing note in which the property owner has stopped making loan payments. The other form is a situation in which the property owner is current on their payments, but the commercial loan term has expired. Or the bank needs to liquidate the loan for other reasons.

Due to privacy requirements of the note selling banks, CRE Note 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.