Continental Plaza, a three-tower office complex along Route 4 in Hackensack, is among the properties foreclosed on this year. A loan servicer foreclosed on the $88 million commercial mortgage secured by the 650,000-square-foot property in February, according to the state and data compiled by Bloomberg News.
The interest-only mortgage, which was originated in 2004 and did not require payments to pay down the loan's principal, apparently could not be refinanced when it matured in September of last year. The loan servicer and the borrower – a joint venture between Morgan Stanley and Normandy Real Estate Partners of Morristown — apparently could not agree to restructure the debt, said Ben Thypin, a senior market analyst with the real estate research firm Real Capital Analytics.
Continental Plaza was valued at $109 million in 2004, and commercial property values have declined more than 20 percent since then, Thypin said.
"Any loan that they're going to get is going to probably value the property at less than the amount they owe," he said. "That's the fundamental problem here."
A change in ownership appeared likely, he said. "Either the lender is taking it back or someone else is going to buy it," Thypin said.
Thypin added, however, that New Jersey's backlogged court system could extend the foreclosure process and property values could rebound in time for the owners to refinance. (Representatives for Morgan Stanley and Normandy declined to comment.)
Read More: http://www.northjersey.com/news/business/94994129_Unabated_pain_for_borrowers.html
A sale would reflect an improved market for the most troubled real estate assets, said Ben Thypin, an analyst at researcher Real Capital Analytics Inc. in New York. Private- equity real estate funds, which have $80 billion to invest, are optimistic that transactions will pick up, London-based researcher Preqin Ltd. said in an April 30 report.
“Until now the major banks haven’t had an incentive to sell off loans they absorbed during the crisis,” Thypin said.
Read More: http://www.bloomberg.com/news/2010-05-21/wells-lnr-said-to-seek-sale-of-2-billion-in-commercial-loans-property.html
Companies purposefully letting properties go into foreclosure, which is known as strategic default, is a growing trend throughout the country, said Ben Thypin, a senior market analyst for Real Capital Analytics, a real estate research and consulting firm.
"People are trying to work it out if they can," he said. "If neither side is willing to give enough, is willing to compromise enough, the borrower feels they have no choice."
Thypin, who runs the distressed assets research group, said that companies don't want to continue making payments because they are based on a value that is no longer realistic.
Read more: http://www.thesunnews.com/2010/05/15/1475551/debt-ditched-by-design.html#ixzz1OL2BnlFU
Lenders and owners restructured $10.5 billion of troubled debt during the first quarter, up from $2.2 billion a year earlier, according the Ben Thypin, senior market analyst at Real Capital Analytics Inc. in New York. Such deals accounted for 49 percent of newly troubled and foreclosed commercial properties in the first quarter, compared with 13 percent in the first quarter of 2009.
...Banks also don’t want to hassle with trying to unload properties they take over.
“They would prefer to avoid selling into this market if at all possible, since doing so would likely result in realizing a loss,” Real Capital’s Thypin said in a telephone interview.
Read More: http://www.bloomberg.com/apps/news?pid=email_en&sid=a28kbMTBElYY
CWCapital Asset Management, a unit of CW Financial, is the special servicer of $143 billion of securitized real estate loans, including more than $18 billion that are delinquent, according to data compiled by Bloomberg. It has access to valuable pricing and payment information, saidBen Thypin, an analyst at researcher Real Capital Analytics Inc. in New York.
The new owner would be “in the driver’s seat on a lot of troubled loans,” Thypin said.
Read More: http://www.bloomberg.com/news/2010-05-12/apollo-centerbridge-said-to-bid-for-commercial-loan-servicer-cw-financial.html
"Most of the trouble in industrial is connected to economic factors such as lost tenants rather than actual debt" says New York City-based RCA's senior market analyst, Ben Thypin, who believes industrial will continue to stay on the low end in terms of distress.
Read More: http://distressedassetsinvestor.coverleaf.com/dai/201005?pg=13#pg13
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.