Remington Capital

I am proud of the way our team at Remington is responding as we roll-out the Distressed Owner Recapitalization Program across the US.  Through our best brokers we are identifying and helping distressed commercial property owners and developers who can benefit from recapitalization of their existing financing. So much discussion today is about new owners going after distressed properties – how about existing investors?  Shouldn’t we be working for them, too?

The problem facing us is historic. The supply of commercial real estate debt has shrunk dramatically.  Further compounding the liquidity problem is the fact that most commercial banks are not in a position to extend credit to new borrowers because they are struggling to manage their deteriorating commercial loan portfolios. 

The continued lack of liquidity in the system has driven yields to unprecedented levels.  The high cost of funds results in more distressed owners having difficulty refinancing their existing debt. And property values are down significantly. These dynamics create problems for owners when they seek to refinance their properties.

The looming $1.2 trillion catastrophe for the U.S. banking system and economy can be avoided if our industry works together to protect current investors at least to some degree so that they at least will benefit from when the market does eventually turn back up.

If you have questions on how we can help with recapitalizing distressed owner debt, please give us a call in any office and we’ll be happy to help. We’re also starting web seminars beginning next week – please ask if you haven’t received information on these.  Andy Bogdanoff – Chairman, Remington

Tags: access to commercial capital, andy bogdanoff, capital stack, Distressed Owner Recapitalization, relief for owners and developers, remington financial group