Grave dancers are slipping into Seattle and picking up office properties on the cheap by buying distressed debt, a dynamic that could spark a flurry of deals for downtown office buildings.
Targets of these opportunistic investor groups are borrowers who bought when the market was hot five years ago and who have now either defaulted or are struggling to repay loans on properties whose values have tumbled in the economic downturn.
In some cases, investor groups are also forced to buy debt instead of property when they are unable to find suitable real estate on the market.
“The people who are buying debt would be interested in buying the property outright, but that is not a viable option in some cases,” said Ben Thypin, director of market analysis at New York real estate research firm Real Capital Analytics.
Grave-dancer investment is hard to track, Thypin said. “The debt-buying market is very opaque,” he said.
Read More: http://www.bizjournals.com/seattle/print-edition/2012/01/27/debt-drives-a-rash-of-office-deals.html?page=all
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.
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