Managing distressed assets that get turned over to banks is expected to be a growth sector in the coming years, according to several participants at last week's International Council of Shopping Center real estate convention in Las Vegas. REITs, brokerage firms and third-party managers are all trying to gain a share of the expanding business.
The rebirth of the CMBS market may have ended before it began, analysts say. Standard & Poor's has warned that billions of dollars of investment-grade securities linked to commercial mortgages face possible ratings downgrades. The news immediately triggered a CMBS sell-off.
Some banks want permission from the Federal Deposit Insurance Corp. to use government money to buy their own troubled assets. The request comes under the Obama administration's Public-Private Investment Program, which is expected to start with $100 billion in taxpayer-funded capital this summer.
Glimcher Realty Trust has joined the ranks of retail landlords prepared to sell part ownership of a few of their better-performing properties to raise capital. The Columbus, Ohio-based REIT wants to sell partial equity stakes in its WestShore Plaza in Tampa, Fla., and Polaris Towne Center in Columbus.