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CRE Finance World, Winter 2014

Responsive Customized Solutions Independent Complex Deals A publication of Winter issue 2014 sponsored by CRE Finance World Winter 2014 37 Some analysts note that special servicers are in a situation ripe for second guessing because properties can only be sold once, making it difficult to compare liquidation strategies. Another avenue for second guessing comes from the fact that special servicers that own the junior bonds would lose their 1% liquidation fee if the classes they own are wiped out before the loans can be liquidated and the holders of the new junior class appoint a replacement special servicer. During an introductory presentation at the seminar, Berenbaum noted that there is a growing trend among special servicers toward liquidation, while loan modification times have dropped from an average 18 months in 2008 to four months in 2013. Panelist Mark Berry, a CMBS trader at Pine River Capital Management, said he expects market conditions — such as servicers’ need to liquidate assets, strong investor demand and availability and terms of debt available for buyers — will produce an increase in bulk liquidations by servicers in which “pricing will exceed expectations.” Bulk Special Servicer Liquidations Raise Questions What our clients are saying: Professional Deep Experience Customer Service Distressed Deals Fast Smart Asset Management . Servicing . Customized Solutions TRIMONTREA .COM


CRE Finance World, Winter 2014
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