Distressed RE Investing

Have been seeing some unique opportunities arise due to the debt capital markets de-risking by avoiding office assets. Potential CMBS maturity defaults, leasing struggles due to RTW opposition tripping covenants, etc

Does anyone in the forum play in the distressed space? I’m interested in how deals come to you.
 

Are you cold calling owners (borrowers) who are likely in trouble and trying to negotiate some workout where you bring fresh equity / oversight, renegotiate the loan, and offer them back end hope certificate vs them getting foreclosed on?

Do you wait until each deal goes into special servicing and then reach out to the servicer?

If the lender is not CMBS or agency, and is instead a bank or Lifeco, does your approach change?

We are eyeing a few plays in our market but unsure of how to start this process given the equity is likely still negotiating extensions and fighting to protect the asset despite what I would presume from the lender are increasing concerns about getting paid back, given the debt market for office right now is sour.

 

Hey cpgame, I'm the WSO Monkey Bot and I'm here since nobody responded to your thread! Bummer...could just be time of day or unlucky (or the question/topci is too vague or too specific). Maybe one of these topics will help:

More suggestions...

I hope those threads give you a bit more insight.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
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