Insights

Chicago is facing a significant challenge as it ranks second in the United States for the highest percentage of office loans on the CMBS watchlist.

Our clients often tell us that they have “spoken to the Servicer” and they believe that their CMBS issue has been resolved which, unfortunately, is not always the case.

When a CMBS loan experiences distress, most borrowers assume that their lender’s interest will be aligned with what is best for the property. This is not always the case.

There are several reasons why a CMBS special servicer might be reluctant to offer discounted payoffs (DPOs) to loans in distress.

Richard Fischel, Senior Advisor, Brighton Capital Advisors, provides The Real Deal CMBS servicing insights in a behind the scenes look behind distressed debt, an increasingly common fight in CRE.

Distressed loans are becoming increasingly relevant across all sectors for borrowers, lenders, and servicers, but what is this distress a result of?

As jarring as it may be to see some of commercial real estate’s biggest owners turn over the keys to once-trophy assets, things are likely to get worse.

The loan extension request involved Brighton Capital Advisors reviewing and integrating the hotel’s operating data along with its future growth projections.

“Part of the origination process on a new loan is the lender asking, ‘Have you ever given the keys back on a prior loan?;” said Richard Fischel of Brighton Capital Advisors. “The smart people will disclose this…”