Who needs a loan sale advisor? Great question, as my attorney says of loan sales, “it’s not exactly rocket surgery.”  In addition there has never been more capital available for the purchase of distressed debt.  Problem banks with problem loans make the headlines in newspapers every day.  Bankers are inundated with calls from prospective loan buyers or “vultures” as my banker friends call them.

So “who” does need a loan advisor?

Not banks who are unconcerned about creating an arms length transaction;

Not sellers that personally know several hundred qualified buyers;

Not banks with workout departments experienced in file assimilation for due diligence; conversion of paper files to electronic files; development of relevant loan data spreadsheets; and creation of a marketable loan summary

Not sellers with special asset departments prepared to obtain confidentiality statements from scores of curious potential bidders; with sufficient staff to police the actions of those people receiving such confidential information; with the ability to evaluate and understand indicative bids, letters of intent, loan sale agreements, buy back provisions, eleventh hour re-trading and closing documents;

Not banks that have executive staff well versed in dealing with sophisticated loan buyers that have been involved in hundreds of millions, if not billions, of dollars in previous distressed loan purchases;

Not lenders that don’t have to answer to a board of directors regarding lender liability; did we get a “fair” price, much less the “best” price; do we have ongoing liability; who is this company or person that is now out collecting, or trying to collect, on our documents with our bank name plastered all over them;

And certainly NOT banks with a proven, written business plan in place of how they will price loans, market them efficiently, sell them without recourse and maximize their collection efforts.

Come to think of it “who needs a loan sale advisor?”

For More Information on Patrick Blount and Benewolf’s services visit Patrick’s blog here

For more info on Walt Arnold/Sperry Van Ness Visit my website www.waltarnold.com

Also be sure to check me out on Facebook and Twitter

Bob – Walt, as we head into springtime, are their some spring cleaning details commercial properties owners should be thinking about?

Walt – Good morning Bob, yes there are and it is a good time to think about some preventive maintenance items.  As the weather starts to warm up and with the time change it is time for maintenance and here are a few items to consider.

1.Check the timer for outside lighting so it is coming on and going off at the correct times.

2.Change batteries in any systems that require it, for example smoke detectors, backup batteries for lighting interior lighting and any other critical systems that require batteries.

3.Many events are scheduled throughout the year, but use the time change for fire inspection, alarm inspections, elevator inspections, and parking lot inspection for restriping or sealing.

4.It’s also time to service the refrigeration equipment for air conditioners and coolers for the upcoming warm up.  Make sure filters and evaporative coolers are serviced and for refrigerated air conditioning it is important to clean the coils and change the filters.  The systems will run much more efficiently with regular maintenance.

Bob – So the saying an ounce of prevention….

Walt – Yes it really is amazing, if an owner will spend a few dollars on periodic maintenance how much it will save in the long run. One area this is very evident is on roofs. During the spring and fall when we don’t get much rain it gives the roofer time to inspect the roof and do the preventative maintenance required. Maintaining roofs twice a year will save thousands of dollars over the life of the roof.  Don’t forget to inspect the roof or gutters for leaves or any debris that might clog up a roof drain or canale.

Bob – Anything else for us today?

Walt – I would like to mention that we manage almost 600,000 square feet of commercial space and if anyone is thinking about a need in commercial real estate property management services, give me a call and we can set up a meeting to discuss our services.

Bob, I also want to talk about some bank owned properties we are selling.  The first is 3701 San Mateo a 12,000 square foot office building for $1,200,000.  The second is 521 Rankin an industrial property just south of Comanche, west of I-25 7,800 sf for $544,000 and we also have a 3,000 square foot restaurant on Zuni just east of San Pedro.  Call me for details.

Bob – How can people reach you today?

Walt – Thanks Bob, call Walt Arnold with Sperry Van Ness, my direct line is 256-1255, website is waltarnold.com, you can also follow me on twitter @waltarnold. We know commercial real estate we do it all day, every day, and very well, give us a call.  Go Lobos.  Bob, have a great week!

Bob – Walt I know this is the commercial real estate report, but I have to ask if you watched the Oscars last night?

Walt - Bob I did, and I love watching the Oscars.  It is always exciting to watch people perform at exceptional levels and to watch actors be rewarded for outstanding performances.

Congratulations to all the winners and also congratulations to Tom Hooper, The King’s Speech, for winning best director.  A director has to coordinate a myriad of events to put together a movie.  Bob we’ve talked before about how a commercial real estate broker helps put together all the pieces of the puzzle in a real estate transaction including coordinating landlords, tenants, attorneys, CPAs , architects, environmental issues and title concerns all resulting in the finished product of a successful real estate transaction, similar to the multi tasking ability a director must have to create a successful movie.

It takes a lot of work and it is important to have a professional to help in that process.  At Sperry Van Ness we have the skills to produce great work.

Bob – Let’s get back to the commercial real estate. What is happening in the commercial markets?

Walt – I would like to quickly focus on the year-end numbers for the office and industrial markets.

The office market continues to struggle but there are some signs of stabilizing.  Median asking rates are up, but when you factor in concessions from landlords the effective rates are down slightly, vacancy rates continue to edge up and there were some employment increases in temporary staffing which was a good sign. However we will need to see significant improvement in jobs for the office market to show strong recovery signs.

In the industrial market the vacancy decreased for the first time since 2009, construction again was the lowest in recorded history.  The owner user market or owner occupied real estate remains strong although price expectations are still difficult between buyers and sellers.  And like office, employment in certain sectors will have to increase for the leasing activity to get stronger.

Bob – Walt, what happening with Coronado Shopping Center, are they getting some new tenants?

Walt - They are, Bob you will be happy to know that Coach, Joppa and Rue21 will be moving in to Coronado.  3 national retailers, that’s good news.  Coronado is also going to demolish an 8,400 square foot building on the east end, which was a former Gateway computer store.  The demolition will provide a pad site for a national restaurant hopefully like the Cheesecake Factory or something similar.

Bob – Walt, how can people contact you today about commercial real estate?
Thanks Bob, call Walt Arnold at 256-1255, website is waltarnold.com. You can also find me on Facebook.com/waltarnold, or on Twitter @waltarnold. Give me a call to discuss your commercial real estate needs.