Bert Haboucha - CRE, Principal, Atlas Capital Advisors Inc.
How the Fed's extend and pretend policy will impact bank stress and the commercial real estate landscape
The real estate market is witnessing a shift where many stakeholders are grappling with the changing dynamics. One of the significant concerns is the valuation of properties. Many banks are hesitant to offload their real estate collateralized non-performing loans (NPL) due to uncertainties in their values. This uncertainty is causing a delay in the stabilization of the bid-ask spread, with some predicting stabilization won’t come much before 2025.
Office spaces are undergoing a transformation and with the rise of hybrid work models, there's a need to rethink the utility of office buildings. Some suggest converting parts of these buildings into residential spaces, while others believe that certain structures might need to be demolished.
Apartments, on the other hand, have seen a surge in supply in some regions. However, the challenge lies in the maturities on bridge loans or apartment debt taken with variable rate loans. Many of these were financed without anticipating significant world changes, leading to potential financial pitfalls. That said, while distressed deals are emerging, they are not (yet) in the volume that one might expect.
Discover the transformation of office spaces, the intricacies of distressed deals, predictions for market stabilization, and the implications of the A/B loan structure in this conversation with workout specialist, Bert Haboucha at Atlas Capital Advisors.
Whether you're an investor, a seasoned professional, or a sponsor, this episode is designed to equip you with the knowledge to make informed decisions. Don't miss out. Tune in now and stay ahead of the curve in the commercial real estate world. Your next big opportunity might just be a click away.
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