Coldwell Banker Premier Realty

Distressed Commercial Real Estate


Ron Opfer, Andrew J. Segal and Others talk about the market
Posted: March 03, 2011 by John McClelland

Costar has published a fascinating discussion of distressed real estate trends and distressed debt. Ron Opfer discusses Las Vegas below in this direct quote from the Costar Article.

The Craig Promenade deal is typical of what Las Vegas insiders are seeing these days.

"There have been three 90,000-square-foot plus retail centers, (one was retail/office), close in the last 90 days. None of them are grocery anchored, and, most of them have been plagued with leasing trouble," said Ron Opfer, director of commercial real estate, special asset solutions for Coldwell Banker Premier Realty in Henderson, NV. "Nonetheless, it indicates the kind of activity Las Vegas is having from a distressed point of view."

"None of these deals would stand out as the kind of deals you would brag about to your friends on the golf course," Opfer said.

Nonetheless, there is a lot of excitement for such deals in Las Vegas, where commercial activity in December 2010 was the markets best month in more than three years.

"Attention is focused like a laser on the extremely distressed markets such as Las Vegas where industrial vacancies are up nearly 400% fom the good times, land values are down 27% oer 2009 which was one of our worst years on record, and the retail and office market still exhibit recession type fundamentals," Opfer said.

"There is a preference for specific property types," Opfer added. "Apartments top the list for nearly every distressed property group. Medical office or high profile retail usually follows. At the bottom of the list are unfinished office or industrial projects."

One thing is for certain about Las Vegas, Opfer said: "Every broker in the country has a buyer for a Class A asset 90% ocupied selling for 10 cents on the dollar. My phone rings every week with an investor looking for this type of asset. Unfortunately, in our market, these deals don't happen. The investment dollars are like piranhas hungry for a Class A center, but, settling for whatever they can get."

Please read the full article which discusses Houston, North Carolina and other areas.

http://www.costar.com/News/Article/Three-Deals-that-Capture-the-Current-State-of-Distressed-Investing/126882



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