Creative Solutions for Distressed Commercial Real Estate
Creative Solutions for Distressed Commercial Real Estate
Commercial real estate loans which were originated over the past several years benefited from historically low interest rates. However, when interest rates surged by more than double in a single year, it triggered a decline in asset values and a significant increase in borrowing costs. This sudden increase in debt service created immense pressure on borrowers, making it challenging, if not impossible, to stay current on existing loans or refinance maturing ones without injecting additional equity. Simultaneously, lenders have taken a more conservative approach, making new financing prohibitively expensive, while potential buyers have opted to remain on the sidelines as they wait out the uncertain market conditions. With $1.5 trillion in CRE debt coming due by 2025, these events have put borrowers and lenders in a very difficult position that nobody could have anticipated just a few years ago.
White Knight Real Estate Solutions understands that many real estate stakeholders are facing financial challenges with their commercial properties due to forces outside their control. Our company is dedicated to providing solutions to these challenges. Depending on their unique situations and objectives, stakeholders have various options available to them. Unfortunately, many stakeholders are unaware of these options. Our ultimate goal is to (a) prevent borrowers from losing their property, allow them to preserve the equity they have built up in their property and (b) help lenders get bad loans off their books. We offer the support and expertise necessary to navigate these challenging situations.
There are many options available that stakeholders may be unaware of, such as negotiating the terms of a current loan, creative refinancing with a new lender who specializes in distressed deals, bringing in rescue capital, a sale-leaseback, or buying the defaulting loan. At White Knight Real Estate Solutions, our goal is to inform and support stakeholders in discovering the best-suited solution for their unique needs. We prioritize education and assistance to help stakeholders navigate through challenging financial situations.
White Knight Real Estate Solutions has over a decade of experience successfully navigating complex real estate and financial transactions. Just as importantly, we have a robust network of key players in the real estate industry, including lenders, investors, brokers, attorneys and developers. We leverage this extensive network to deliver favorable outcomes for our clients.