Commercial Real Estate Finance

Posts Tagged ‘opportunity costs’

Landlords are scrambling to find tenants and buyers at a reasonable price. Buyers are scrambling to pool funds together to buy distressed assets. Over the last 6 months or so, we here at Llenrock have been approached by a variety of would be investors seeking equity to start, in some form or fashion, a distressed asset fund.  The simple logic is that with asset values plummeting, there will be opportunity.  There HAS to be opportunity.  Its the basic “sell high, buy low” mentailty of Wall Street. We hear pitches like, “I have an opportunity to buy a Class A building in a good submarket for only $100 per square foot!  It’s a steal!  It’s a no-brainer that its a good buy!”

Well, it may be a no-brainer…not because its a good buy, but because the people aren’t using their brains to properly assess the market. Read the rest of this entry »

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