Jon Winick - CEO of Clark Street Capital

The art of setting realistic expectations in a down commercial real estate market

Jon Winick, CEO of Clark Street Capital

Everything's sellable. In today’s market, it's just a question whether seller expectations are reasonable.

My guest today, Jon Winick, CEO of Clark Street Capital a bank advisory and asset disposition firm specializing in loan sales, both performing and non-performing, explains how elevated interest rates are posing challenges for banks on how their loan portfolios are sold.

As defaults rise and a potential banking crisis looms, a hurdle the industry faces is in balancing appraised values that are backward looking (mandatory for banks per regulations), with today’s reality – especially as buyers are forward looking in both their underwriting and expectations.

Lenders are treading with caution, meticulously analyzing their portfolios while fully aware of the growing cloud over the commercial real estate markets, particularly office and, increasingly, multifamily.

But it's not all about cautionary tales; it's also about opportunities and understanding the market's pulse. In today’s conversation, Jon emphasizes the essence of realism in the loan sales market, especially when outdated appraisals come into play.

Despite these and other frictional hurdles in finding price equilibrium while balancing buyer and seller expectations, opportunities beckon for investors eyeing real estate through discounted loan purchases.

Join us for a comprehensive look at how banks are navigating the rising interest rate environment as their CRE portfolios tank in value, and learn how to identify opportunity through the markets’ current fog of uncertainty.

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