San Diego-based commercial real estate workout firm Breakwater Equity Partners saves investor equity through a creative workout process.
San Diego, CA (PRWeb) February 22, 2011 – Breakwater Equity Partners, a consulting firm specializing in commercial loan workouts, announced today the closing of a successful loan workout on a stalled twelve-story office building construction project in downtown San Diego.
Rendering of 610 Lexington, subject of Bad Boy Guarantee law suit
With the ongoing debate about whether bankruptcies or foreclosures are easier for the market to digest, it would appear that “bad boy guarantees” are definitely limiting the number of bankruptcies and slowing the debt removal process. These guarantees, also called “springing guarantees” were initiated in the 1980s, but became more noticeable in the 1990s. They were a response to the tendency of borrowers to file a Chapter 11 bankruptcy motion just days before a lender was in position to foreclose.
Lack of growth often leads to deflation. We experienced a similar trend – yet for different reasons – 80 years ago. The stock market initially crashed in 1929, but 1930-1932 was a time of a turbulent stock market that managed to stay afloat. It wasn’t until late 1932-1938 that deflation set in and the stock market set new lows. Could we be experiencing something similar right now? The banking sector is signaling a strong response to that question. And the answer is yes.
Continue reading “Banks Continue To Fail At A Record Pace” »
Unlike traditional mortgages, defaulting on a commercial property does not carry the same stigma, either in financial terms or in how the company is perceived by future lenders. In fact, for some companies defaulting on so-called “underwater” properties, or commercial property that has fallen in value so that the debt owed is greater than the property’s current worth, actually brings them rewards from their shareholders. This is because shareholders prefer to see the funds that could be spent on paying down an underwater loan utilized in other areas of the company.
Continue reading “Commercial Property Owners Choose to Default” »
In these tough economic times, it appears that even players in the “sport of kings” are tightening their waistbands to the dismay of golf course owners and their financial backers. Many posh private courses have had to delay improvements, lower their membership fees, and allow public play for daily greens fees. While this has been a pleasant proposition for the public golfer, it hasn’t made the members who paid hefty membership fees during healthy economic times very happy. The combination of decreased income, increased expenses, and unhappy members has put the golf course portion of the real estate market “in the rough”.
In Arizona alone, 15 golf courses have gone into foreclosure or bankruptcy since the middle of 2008. To date, all golf courses remain open, but many have changed ownership, often at fire-sale prices. Some prestigious courses have sold for as low as ten cents on the dollar. The multi-million dollar Club West Golf Course in Phoenix was recently sold for only $500,000, less than the original price for many homes in the area. Residential properties that border golf courses are also experiencing price drops and foreclosure increases. Continue reading “Golf Course Owners in Rough Situation” »
