REBROADCAST: Debt Purchase Transactions: Beware of the Risks

Current market conditions may present unprecedented opportunities to purchase debt secured by distressed commercial real estate assets at potentially significant discounts. A record number of CRE secured loans are maturing at a time when owners are facing high interest rates, declining occupancy rates and correspondingly reduced cash flows and property valuations. CRE foreclosures are becoming more frequent.

For those looking for buying opportunities, it may seem reasonable to assume that purchasing a CRE secured loan at a discount is worthy of some consideration. However, buying CRE secured debt is very different than acquiring real estate itself. It presents unique risks and requirements and these differences can have an adverse impact on your investment returns.

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About the author:
Pamela V. Rothenberg