NREI_NEWSLINE_ Penton Media September 16, 2009 If you want to view this on the web go to: http://enews.penton.com/enews/nrei/v/737 TOP STORY --Capmark's Troubles Highlight Plight of Many CRE Lenders By Matt Hudgins With more than $1.6 billion in second-quarter losses and plans to sell off its most viable business operations, Capmark Financial Group Inc. provides a painful example of the turmoil plaguing many large lenders to the commercial real estate industry. In its second-quarter report published earlier this month, the Horsham, Pa.-based commercial real estate finance company disclosed an agreement to sell its mortgage banking origination and servicing businesses to Berkadia III, a partnership owned by Warren Buffett's Berkshire Hathaway Inc., and Leucadia National Corp., for $450 million. Later that week, rating agencies lowered Capmark's credit ratings to reflect the company's likelihood of defaulting on its cumbersome debt. To view the full article go to: http://nreionline.com/finance/news/capmark_troubles_0916/ ONLINE EXCLUSIVES --Corus Bank Falls Victim to Economy, Condo Loans By Denise Kalette Corus Bank, a major commercial real estate lender, disappeared over the weekend after the Chicago-based bank was seized by federal regulators and its offices reopened as part of MB Financial Bank, also based in Chicago. The failure indicates a growing role of soured commercial real estate loans in bank distress. MB Financial bought $3 billion of Corus assets and regulators are arranging the sale of another $4 billion in commercial real estate assets through private placement channels, says LaJuan Williams-Dickerson, a spokeswoman for the Federal Deposit Insurance Corp. (FDIC), which was appointed receiver after the closure on Friday. To view the full article go to: http://nreionline.com/news/corus_bank_falls_0914/ --Commercial Real Estate Delinquency Rates Climb By Denise Kalette Delinquency rates for commercial real estate loans continued to rise in the second quarter, the Mortgage Bankers Association (MBA) says in a new report. The delinquency rate on loans held in commercial mortgage-backed securities (CMBS) and at least 30 days past due rose from 1.85% to 3.89% between the first and second quarters. Meanwhile, the delinquency rate on loans held or insured by Fannie Mae and at least 60 days past due rose from 0.34% to 0.51%, MBA notes. To view the full article go to: http://nreionline.com/news/delinquency_rates_climb_0911/ --PwC Survey: Defaults Could Jump-Start Stalled Distressed Buying Opportunities By Sibley Fleming Despite rapid deterioration of commercial real estate fundamentals, equity investors have been frustrated with the lack of distressed buying opportunities. However, according to the third-quarter PricewaterhouseCoopers' Korpacz Real Estate Investor Survey, investors anticipate near-term defaults combined with looming due dates on commercial mortgage-backed securities (CMBS) maturities to jump-start distressed buying opportunities during the next year. While some investors are looking to the $153 billion of CMBS loans due in 2012 to spur buying opportunities, commercial banks account for a much greater percentage of the total looming debt and could provide distressed sales sooner than 2012. To view the full article go to: http://nreionline.com/news/defaults_jump_start_distressed_buying_0915/ Advertisement ---------------------------------------- Real Estate Advanced Finance Program from Harvard University Graduate School of Design Led by top industry experts and distinguished academicians, this new executive education program is designed specifically for seasoned executives who have a solid understanding of and interest in real estate finance. October 14-16, 2009. http://execed.gsd.harvard.edu/professional/exec_ed/programs/reaf ---------------------------------------- Featured Research ---------------------------------------- *Top 25 Brokerages 2009 (http://nreionline.com/research/nrei-top-25-brokerages-0401/) *Seniors Housing Research (http://nreionline.com/seniorshousing/research-offer/index.html) *Distressed Real Estate (http://nreionline.com/distressedinventory/) *2009 Real Estate Investment Outlook (http://nreionline.com/research/2009_real_estate_investment_outlook/) ---------------------------------------- Advertisement ---------------------------------------- (http://www.irem.org/sec1ins.cfm?sec=aboutirem&con=cpm_arm_aso_directory.cfm&par=) ---------------------------------------- NREI Interactive Products ---------------------------------------- THE ALTER GROUP Larry Armstrong on Architecture in a Recession (http://nreionline.com/images/larry-armstrong-architecture.mp3) Larry Armstrong, President, Ware Malcomb, an international architecture firm, says that in times of recession, survival is dependant on having a strong strategic plan in place and creating functional work vs. extravagent projects to meet clients' needs... WHITE PAPER Back To Basics To Stay Strong In Commercial Real Estate (http://nreionline.com/research/ge-capital-real-estate-0729/) To succeed in this real estate market, investors and managers need a new kind of toolbox... ---------------------------------------- Advertisement ---------------------------------------- The Real Estate Investment Securities Association (REISA), formerly the Tenant-In-Common Association (TICA) will hold its Annual Conference October 18-20, 2009 at the Bellagio Hotel in Las Vegas. This event provides educational and networking opportunities for sponsors, broker-dealers and registered representatives. http://www.reisa.org/sections/events.registernow.php ---------------------------------------- ---------------------------------------- OHIO COMMERCIAL REAL ESTATE AUCTION. This business campus consisting of two 4-story office towers sits on twelve acres. The 105K Sq ft facility was appraised in 2008 for $8.6M with a starting bid of $900K. BID ONLINE on Oct 15th. http://jll.auction.com/?utm_source=Commercial&utm_medium=NationalRE300x250&utm_campaign=B-001 ---------------------------------------- ---------------------------------------- The Trigild Lender Conference is the preeminent symposium for the latest education on non-performing commercial loans, specifically targeted for special servicers and asset managers working at financial institutions, non-performing portfolio managers, hedge funds, and their in-house counsel. http://www.trigildlenderconference.com ---------------------------------------- ABOUT THIS NEWSLETTER Do you have editorial comments or ideas regarding NREI Newsline e-newletter? 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