Bank Failures May Trigger More Bankruptcies for CRE Owners

The recent surge in bank failures is worsening the nation’s liquidity crisis and may trigger more bankruptcies for commercial real estate owners in need of financing, according to Andy Bogdanoff, chairman of Remington Capital.

“With $1.2 trillion in commercial real estate debt scheduled to mature over the next few years and most U.S. banks unable or unwilling to extend new credit, the need for large amounts of private commercial capital has never been greater,” he said.

“There have been about 250 bank failures involving hundreds of billions of dollars in assets since the start of the financial crisis in 2007,” commented the chairman of the international commercial real estate investment banking company. “And with hundreds of additional bank failures expected over the next few years, many commercial real estate owners may be unable to finance or refinance properties through traditional banking sources.”

However, there are billions of dollars in private capital available, which presents a unique opportunity for the commercial real estate community, Bogdanoff added.