Wednesday, May 9, 2012

Loan Market Needs 'Creative Destruction' via REIT.com

The market for distressed commercial real estate loans could benefit from some “creative destruction,” according to Tobin Cobb, co-CEO of LNR Property.

In a video interview with REIT.com at a Real Estate Luminaries Series event on April 19 at Georgetown sponsored by NAREIT in conjunction with the McDonough School of Business, Cobb offered his insight on the state of the commercial real estate loan market. He noted that those who had lived through the Resolution Trust Corp. era were expecting a higher level of activity in the market.

“We haven’t, obviously, seen anywhere near the level of liquidations of distressed debt that we collectively had expected based on the majority of our experiences collectively from the Resolution Trust era,” Cobb said. “A great deal of capital was raised to face off against that pending opportunity, which clearly has not taken place.”

Watch video...Loan Market Needs 'Creative Destruction' via REIT.com

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