Is the Impact of COVID-19 a Threat to your CRE Investment?
Updated: Apr 23, 2020
Since 2009, Hart Advisors Group has been helping borrowers and owners of distressed commercial real estate achieve solutions in challenging economic times. As experts in CMBS and loan advisory, Hart has been modifying loans to protect CRE investments for the past 11 years. The recent pandemic caused by the novel coronavirus has rocked global markets and sent shockwaves through all industries. While the impact to CRE is still unfolding, we wanted to pass along our recommendations when reviewing the immediate effects of COVID-19 on your real estate investments:
Be proactive. CMBS Servicers and banks have continued to cut staff as the economy recovers. The impact of COVID-19 on real estate is likely to trigger mass defaults and overwhelm the bank and servicing platforms. The result will likely cost borrowers more time and money.
Understand that modifications will be different than those done during the great recession. Financial safeguards were installed which changed the post-2009 originated loans. We also need more creativity and flexibility due to the nature of this event.
Don’t panic! Hart has been working with borrowers and owners for over a decade and will continue to help clients navigate through this period of volatility once again. Hart is in constant communication with lenders, receiving daily, first-hand knowledge of what is currently being done on distressed loans and what you can expect as national events develop.
Evaluation of your situation is always free. As we have done for the past 11 years, we strive to gain the most beneficial resolution for each client.