The commercial real estate industry is in the crosshairs of a major storm that is bearing down and preparing to strike. Recent reports show that there is approximately 1.4 trillion dollars of commercial real estate debt set to mature in 2023 and 2024, with much of it being in multifamily properties. These properties will be trying to refinance in a vastly different credit market that will involve not only sharp increases in interest rates but also tightened standards. As Sam Zell once said, “The problem with leverage is that you need to pay it back,” and many investors are going to learn that lesson in a painful way.
When, not if, this storm hits, lenders will face complex decisions. In some instances, borrowers may throw the keys back to the lender because they just cannot see a way forward in the new economic climate. In other instances, it may be a more contentious relationship that will lead to longer legal battles before reaching an amicable resolution.
In both instances, lenders will need to use the services of experienced and nimble real estate professionals who understand the situation and are adept at traversing the troubled asset landscape. These professionals will need to secure the asset, assess its condition, identify any physical issues that need immediate attention, manage the day-to-day business operations of multifamily, retail, warehouse, and office properties, chart a course for stabilizing the property, and navigate the property through the receivership or troubled asset process in order to transfer to the next phase of ownership.
As this storm comes ashore and you find yourself in need of a trusted and experienced partner to help you manage troubled properties or serve as a Court Appointed Receiver, keep MWI Real Estate in mind. We have decades of experience and a team of professionals ready to help you through these processes.
Contact us at 317-784-5899 ext. 29 or at MWilliams@MWIRealEstate.com and speak to Michael Williams about how we can help you.