Commercial real estate : background and issues / Kimberly C. Miller, editor.

Format:

Book

Contributor:

Miller, Kimberly C.

Series:

Economic issues, problems and perspectives series.

Economic issues, problems and perspectives

Language:

English

Subjects (All):

Commercial real estate--United States.

Commercial real estate.

Commercial real estate--United States--Finance.

Physical Description:

1 online resource (245 p.)

Edition:

1st ed.

Place of Publication:

Hauppauge, N.Y. : Nova Science Publishers, c2010.

Language Note:

English

Summary:

Offers an overview of the threats facing the commercial real estate markets, and the problems facing communities, small businesses and American families struggling to make ends meet in difficult economy.

Contents:

Intro

COMMERCIAL REAL ESTATE: BACKGROUND AND ISSUES

LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA

CONTENTS

PREFACE

Chapter 1 COMMERCIAL REAL ESTATE LOSSES AND THE RISK TO FINANCIAL STABILITY

EXECUTIVE SUMMARY*

SECTION ONE: FEBRUARY REPORT

A. Introduction

B. What is Commercial Real Estate?

1. Types of Commercial Real Estate

a. Retail Properties

b. Hotel and Tourist Properties

c. Office Buildings

d. Industrial Properties

e. Multifamily Housing and Apartment Units

f. Homebuilders

2. How Commercial Real Estate Is Financed

a. Construction and Development Financing

b. Permanent Financing

3. Kinds of Difficulties Commercial Real Estate Can Encounter - An Introduction

C. History of Commercial Real Estate Concerns

1. Commercial Real Estate Crises of the 1980s and 1990s

2. Recognition of Commercial Real Estate Problems before the Crisis Broke

3. During the Late 2000s

4. Emergency Economic Stabilization Act and the TARP

D. Present Condition of Commercial Real Estate

1. Economic Conditions and Deteriorating Market Fundamentals

E. Scope of the Commercial Real Estate Markets

1. Whole Loans

2. Commercial Mortgage Backed Securities (CMBS)

a. Servicing

b. Underlying Property and Location

3. CMBS Credit Default Swaps

4. Financing of Multifamily Housing

F. Risks

1. Loans Become Delinquent

2. Loans Go into Default or Become Non-Performing

3. Loans Are Not Refinanced

a. Qualifying Loans Face Scarcity of Credit

b. Loans that Fail to Qualify for Refinancing

4. New Loans Fail to Get Financing

5. Broader Social and Economic Consequences

G. Bank Capital

Financial and Regulatory Accounting Issues

Counterparty Issues

and Workouts

1. Commercial Real Estate and Bank Capital278.

2. Accounting Rules284

3. Commercial Real Estate Workouts

a. Options for Resolving Defaulting or Non-Performing Loans

b. Can different structural models and servicing arrangements allow private markets to function more effectively than was true for residential real estate?

c. Are workouts actually happening? If not, why not?

d. Potential Impediments to Successful Workouts

i. REMIC

ii. Taxation of Foreign Investors in U.S. Real Estate

e. Loss Recognition

H. Regulatory Guidance, the Stress Tests, and EESA

1. Supervisors' Role before Mid-2008

2. Supervisors' Role in the Stress Tests

3. Supervisors' Role Regarding Loan Workouts

4. Supervisors' Role in Banks' Exit from the TARP

5. Summary

I. The TARP

1. The Term Asset-Backed Securities Loan Facility (TALF)

2. The Public Private Investment Program (PPIP)

3. The CPP

4. Small Banks, Small Business, and Commercial Real Estate

5. What Approach to Take?

a. Mid-Size and Small Banks

b. Large Banks

J. Conclusion

ANNEX I. THE COMMERCIAL REAL ESTATE BOOM AND BUST OF THE 1980S

1. Demand for Office Space and Regional Impact

2. Tax Law Changes

3. Inflation, Interest Rates, and the Deregulation of Thrift Institutions

4. Competition among Lending Institutions and Lax Lending Practices

5. Faulty Appraisals

SECTION TWO: UPDATE ON WARRANTS

SECTION THREE: ADDITIONAL VIEWS

A. J. Mark McWatters and Paul S. Atkins

SECTION FOUR: CORRESPONDENCE WITH TREASURY UPDATE

SECTION FIVE: TARP UPDATES SINCE LAST REPORT

A. TARP Repayments

B. CPP Monthly Lending Report

C. CPP Warrant Disposition Report

D. TARP Initiative to Support Lending to Small Businesses

E. Term Asset-Backed Securities Loan Facility (TALF)

F. Legacy Securities Public-Private Investment Program (PPIP).

G. Home Affordable Modifications Program (HAMP) Updated Requirements

H. Metrics

I. Financial Update

1. TARP

a. Costs: Expenditures and Commitments

b. Income: Dividends, Interest Payments, and CPP Repayments

c. TARP Accounting

2. Other Financial Stability Efforts

a. Federal Reserve, FDIC, and Other Programs

3. Total Financial Stability Resources (as of December 31, 2009)

SECTION SIX: OVERSIGHT ACTIVITIES

Upcoming Reports and Hearings

SECTION SEVEN: ABOUT THE CONGRESSIONAL OVERSIGHT PANEL

ACKNOWLEDGMENTS

APPENDIX I. LETTER FROM SECRETARY TIMOTHY GEITHNER TO CHAIR ELIZABETH WARREN, RE: PANEL QUESTIONS FOR CIT GROUP UNDER CPP, DATED JANUARY 13, 2010

ENCLOSURE

Requests for Documents

End Notes

Chapter 2 OPENING STATEMENT OF ELIZABETH WARREN, CHAIR OF THE CONGRESSIONAL OVERSIGHT PANEL - HEARING ON ―COMMERCIAL REAL ESTATE‖

Chapter 3 OPENING STATEMENT OF RICHARD NEIMAN, CONGRESSIONAL OVERSIGHT PANEL FIELD HEARING ON ―COMMERCIAL REAL ESTATE‖

Chapter 4 OPENING STATEMENT OF DAMON SILVERS, CONGRESSIONAL OVERSIGHT PANEL FIELD HEARING ON ―COMMERCIAL REAL ESTATE‖

Chapter 5 OPENING STATEMENT OF J. MARK MCWATTERS, CONGRESSIONAL OVERSIGHT PANEL FIELD HEARING ON ―COMMERCIAL REAL ESTATE‖

Chapter 6 STATEMENT OF JON D. GREENLEE, ASSOCIATE DIRECTOR, DIVISION OF BANK SUPERVISION AND REGULATION, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, BEFORE THE CONGRESSIONAL OVERSIGHT PANEL FIELD HEARING ON ―COMMERCIAL REAL ESTATE‖

BACKGROUND

CONDITIONS IN FINANCIAL MARKETS AND THE ECONOMY

PERFORMANCE OF THE BANKING SYSTEM

CURRENT CONDITIONS IN COMMERCIAL REAL ESTATE MARKETS

FEDERAL RESERVE ACTIVITIES TO HELP REVITALIZE CREDIT MARKETS

AVAILABILITY OF CREDIT

CONCLUSION

End Notes.

Chapter 7 STATEMENT OF DOREEN R. EBERLEY, ACTING REGIONAL DIRECTOR, ATLANTA REGIONAL OFFICE, FEDERAL DEPOSIT INSURANCE CORPORATION, BEFORE THE CONGRESSIONAL OVERSIGHT PANEL FIELD HEARING ON ―COMMERCIAL REAL ESTATE‖

ADC LOAN CONCENTRATIONS IN ATLANTA

ERODING CREDIT QUALITY OF OTHER CRE LOANS IS AN EMERGING RISK

FDIC RESPONSE TO RISKS IN THE CRE MARKETS

Chapter 8 WRITTEN TESTIMONY OF CHRIS BURNETT, CHIEF EXECUTIVE OFFICER, CORNERSTONE BANK, ATLANTA, BEFORE THE TARP CONGRESSIONAL OVERSIGHT PANEL FIELD HEARING

BANK REAL ESTATE LENDING

COMMERCIAL REAL ESTATE PROBLEMS

Residential AD&amp

C Problems

Multifamily Problems

Commercial and Industrial (C&amp

I) Problems

EFFECTS OF TARP, AVAILABILITY OF CAPITAL FOR BANKS AND CREDIT AVAILABILITY

BUSINESS LOAN DEMAND AND PRUDENT CAUTION

NEW CAPITAL SCARCE

OTHER CAPITAL CONSTRAINTS

Chapter 9 COMMENTS FROM MARK L. ELLIOT, TROUTMAN SANDERS, LLP, ON THE MORTGAGE AND SALE MARKETS FOR COMMERCIAL REAL ESTATE

Demand Side

Supply Side

LEGACY LOANS PROGRAM

LEGACY SECURITIES PROGRAM

Chapter 10 TESTIMONY OF BRIAN OLASOV,* MANAGING DIRECTOR, MCKENNA LONG &amp

ALDRIDGE, LLP, CONGRESSIONAL OVERSIGHT PANEL - ATLANTA FIELD HEARING

Chapter 11 STATEMENT OF DAVID STOCKERT, PRESIDENT AND CHIEF EXECUTIVE OFFICER, POST PROPERTIES ON BEHALF OF THE NATIONAL MULTI HOUSING COUNCIL AND THE NATIONAL APARTMENT ASSOCIATION, BEFORE THE CONGRESSIONAL OVERSIGHT PANEL

THE STATE OF THE MULTIFAMILY INDUSTRY

A. Multifamily Vacancy

B. Multifamily Construction Activity

C. Rents and Transaction Activity

D. New Apartment Absorption

DEBT FINANCING AND LIQUIDITY

MULTIFAMILY LOAN PERFORMANCE

SECONDARY MARKET CONCERNS AND FUTURE

COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS).

TROUBLED ASSET RELIEF PROGRAM (TARP)

NATIONAL POLICY CHANGE TO MEET OUR HOUSING NEEDS

ELEMENTS OF A BALANCED HOUSING POLICY

IS A SUPPLY SHORTAGE LOOMING?

New Construction Trends

The Current Oversupply

How Fast Can the Excess Inventory Be Used Up?

WHO'S MOVING INTO APARTMENTS?

Households on the Move

Recent Movers

MORE COMPETITION FROM HOMEOWNERSHIP?

Measuring Affordability

The House Price Effect

THE GSES' ROLE IN MULTIFAMILY FINANCE

Background

The GSEs and Liquidity

NEW APARTMENT ABSORPTIONS

Multifamily Mortgage Debt

CONDO CONSTRUCTION

Apartment Investment Returns

CHAPTER SOURCES

INDEX.

Notes:

Includes index.

Description based on print version record.

ISBN:

1-61728-649-4

OCLC:

785231734