The good news: There are still multifamily distressed assets available for sale. The bad news: There is no great firesale a la the RTC days-, meaning the bulk of these assets remain at market-rate. “We are certainly not suggesting there are no distressed opportunities left, but many buyers, relative to their expectations about how much distressed product was going to enter the market and were expecting waves of quality assets at discounted prices, are being disappointed,” says Steve Weilbach, senior managing director and national head of multifamily at Cushman and Wakefield.
Nevertheless, Weilbach and other experts note there are still relatively well-priced multifamily opportunities available if buyers are willing to look at older assets in secondary markets.
Data from Trepp LLC show that the stock of troubled commercial real estate loans currently stands at $18 billion. Bank and CMBS mortgages that are delinquent or in default total $16.8 billion, while $1.2 billion of CMBS mortgages are in special servicing. The amount of debt that is non-performing is not quite as high for multifamily as for other property types. However, there are still buying opportunities in the distressed sector, agrees Matt Anderson, managing director at Trepp.
Read more...Working the Distressed Market via MultiHousingNews.com
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