Today’s commercial real estate market is in distress and has been, across a variety of asset classes, for several years. The reasons are well-known. The options for the loan in distress are somewhat well known. They are becoming less mysterious day by day. These, more traditional, options will be described in the first installment of this article below.

Less well known is possibly the surest solution in this down cycle. This is a creative, opportunistic method to right-size commercial real estate loans where the value of the underlying real estate is, sadly (and in some cases, shockingly), so much lower than it was only a few years ago. It saves real estate assets in distress and maximizes the potential (long term recovery) upside for all parties to the transaction. The second installment of this article will identify and explore that solution, available regardless of real estate asset class, geography or emotion.

The Commercial Real Estate Loan in Distress