A recent article on January 9th in the Las Vegas Review Journal addressed commercial foreclosures in the next 18 months. The managing director of George Smith Partners, David Rifkind, made several comments that may ease some worries about the financial situation going through a collapse. In the article Rifkind was quoted as saying “ $80 billion in commercial backed mortgages will mature in the next 18 months. As long as properties are showing enough cash flow, they will go to modification or negotiation.”
He went on further to state that the market will trend toward resetting and modification rather that lenders foreclosing and selling off assets at a new basis.”
This could be better news if not the best news for developers and owners currently stressed by over extension of cash against properties whose values have been sheared by as much as 35 to 50% under original purchase prices.
Full article was in Business Section ‘D’ of the Las Vegas Review Journal , 1.09.2010
NOTE: “Vegas Commercial Broker ” is a community service blog and is written for information purposes only. The author is not compensated for commentary.
-Vic Donovan “ Vegas Commercial Broker.com ”
