Commercial Real Estate Restructuring Revolution: Strategies, Tranche Warfare, and Prospects for Recovery

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John Wiley & Sons, Dec 1, 2010 - Business & Economics - 288 pages
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How to plan for the commercial real estate collapse

Encompassing apartment, office, retail, hospitality, warehouse, manufacturing, and flex or R & D buildings, commercial real estate (CRE) investment in the U.S. totaled $6.4 trillion at the end of 2008. As noted in the February 2010 Congressional Oversight Panel Report, $1.4 trillion of CRE debt is coming due by 2014 and half of the CRE projects securing such debt are underwater. Commercial Real Estate Restructuring Revolution: Strategies, Tranche Warfare, and Prospects for Recovery looks at how we got into this mess–impacts of the housing crisis, debt structures, lender-borrower collusion, and bankruptcy abuses–and offers possible solutions to the CRE crisis. Along the way, author Stephen Meister:
• Discusses how CRE value losses are being driven by investors’ risk adjusted cap rates, not just poorer market fundamentals
• Discusses strategies and emerging trends in CRE foreclosures, including forced lender fundings, lender attempts to chill bids and UCC foreclosure tactics and pitfalls
• Proposes legislative solutions and explains how any rebound will require federal spending cuts, a vast deleveraging and a market clearing process
With a crashing CRE debt market and the hundreds of CRE-heavy regional banks destined for failure, getting out ahead of the curve is essential. Commercial Real Estate Restructuring Revolution addresses how we got here and how you can plan for the impending crash.

 

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Very interesting insight into the world of commercial foreclosures through the lens of an attorney. The book is mostly focused on CMBS financing and loans that are structured in that vein. But it is an important lesson in vocabulary and procedure.
Doesn't sound like the RTC can bailout this time bomb should it pan out the way the author is painting it. We should hope the economy can gain traction and be the ultimate bailout of this important sector, otherwise, where can I get my CDS on those commercial CDOs?
Allen
Santa Fe, NM
 

Contents

CHAPTER
15
CHAPTER 3
33
CHAPTER 4
55
Tranche Warfare
77
Loans to Own and Chilling the Bid
91
CHAPTER 9
117
Multifamily Market
131
CHAPTER 11
145
CHAPTER 13
175
The Centerpiece for Real Reform
189
CHAPTER 15
203
Notes
219
Index
233
Copyright

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About the author (2010)

STEPHEN B. MEISTER is a founding partner of Meister, Seelig & Fein, LLP, where he represents real estate investment trusts, real estate private equity firms, hedge funds, banks, real estate developers, and investors. Well known throughout New York City for the powerful deal-making presence he brings to high-stakes negotiations, he is also nationally recognized for the trial skills he brings to bear in complex lender liability cases, mortgage and mezzanine equity collateral foreclosures, affordable housing cases, mandamus proceedings against state and municipal agencies, rent control laws, contract disputes, business tort actions, legalmalpractice, and brokerage commission claims. Meister appears regularly on Fox News and CNBC, and writes op-ed pieces for the New York Post that are reprinted by many online news sites. Mr. Meister is often quoted or featured in the Wall Street Journal, New York Times, New York Post, Crain's New York Business, Real Estate Weekly, The Real Deal, and other business journals and daily newspapers around the country.

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