National Pandemic? Shutdown all non-essential businesses? Stay in place mandate?!
Questions all too familiar, unexpected, and puzzling this time one (1) year ago with the assumption this nightmare would all be over in 3 to 6 months. Unfortunately, by 3rd quarter 2020, the world started to realize we were in a cycle with an unknown exit date or strategy and many lost lives. Many Borrowers were at this crossroad much sooner than 3rd quarter 2020—the closure of hotels and retail centers pursuant to government mandate(s) was accompanied by several other problems such as sharp declines in occupancy, tenants requesting rent relief, or tenants simply not paying rent at all. Any previous excess property cashflow and equity quickly depleted.