PROFESSIONAL INVESTORS BANKRUPTCY: REAL ESTATE FMV

Professional Investors bankruptcy was filed under Chapter 11 on July 26, 2020 in San Francisco.  The joint debtors (Professional Investors Security Fund Inc. and Professional Financial Investors Inc.) own 29 real estate projects in Marin County.

The properties include both commercial and residential.  These projects were financed largely by individual investors who live in Marin County. Continue reading “PROFESSIONAL INVESTORS BANKRUPTCY: REAL ESTATE FMV”

NORDSTROM WILL RESTRUCTURE ITS LEASE PAYMENTS BY 50%

According to Retail Dive, Nordstrom Department Store president, Jamie Nordstrom, informed its landlords that Nordstrom will restructure its lease payments by 50% for the remainder of 2020. The Nordstrom decision was reported in this article updated July 10, 2020.

Why is this Important to My Business?

There are many reports that major companies are restructuring lease payments in 2020.  But few news articles reveal the actual amount that rents are being reduced.  Therefore, the revelation that Nordstrom will restructure its lease payments fully by half is a useful measuring stick to all companies who need to restructure their own lease payments. Continue reading “NORDSTROM WILL RESTRUCTURE ITS LEASE PAYMENTS BY 50%”

CMBS DELINQUENCY RATE SURGE IN JUNE 2020

A significant CMBS delinquency rate surge occurred in June 2020  (a 10.32% overall delinquency increase), according to Trepp, a commercial real estate intelligence company.

As per Trepp, aggregate delinquency rates increased 317 basis points over the May number, reaching 10.32%; very nearly the highest CMBS delinquency rate on record. About 5% of that number represents loans in the 30 days delinquent bucket while another 3.2% are now 60 days delinquent.

What is CMBS?

The acronym CMBS means “commercial mortgage-backed security.”  Continue reading “CMBS DELINQUENCY RATE SURGE IN JUNE 2020”