NAI Global Launches Special Asset Solutions Group to Focus on Distressed CRE Portfolios

NAI Global has formed a Special Asset Solutions™ group to assist clients with financially distressed real estate assets and REO.

The new group concentrates NAI Global’s resources across multiple disciplines and markets to provide banks, financial institutions, special servicers and other holders of REO assets with the full spectrum of services an asset is likely to require throughout the ownership cycle. The group’s offerings include loan sales and restructurings, asset and property management, receivership, due diligence, valuation, leasing and disposition.

“With a large number of assets coming under their supervision over the next 12-24 months, lenders are having to adapt to a new role as de facto property owners,” notes NAI Global President & CEO Jeffrey M. Finn. “This realignment of our established service lines enables understaffed REO departments to focus on their core competencies while proactively dealing with their nonperforming loans and REO.”

NAI’s Special Asset Solutions™ team, led by Executive Vice President Rhyne Brown, works with the client to assess the physical asset, preserve and enhance the asset’s current value, mitigate risk and put a strategy in place to dispose of the property or loan. The team is supported by the local expertise of 5,000 professionals in over 325 NAI offices worldwide.

“While there are a variety of issues that must be addressed along the way, the ultimate goal for many of our clients is a successful disposition,” Brown says. NAI employs a variety of disposition methods, from traditional marketing to loan sale programs and accelerated marketing programs like the Commercial Property PowerSale™, NAI Global’s online property auction platform. NAI’s disposition expertise runs across all property types and ensures broad exposure to commercial real estate investors across the U.S. and worldwide.

NAI Global's Global Market Report Details Challenging 2009

Commercial real estate markets around the world experienced the full impact of the global economic recession in 2009, according to the 24th annual Global Market Report released by NAI Global. Rising vacancy rates and declining rental rates were evident in virtually every market sector and geography, with weak demand and a growing supply of sublease space further eroding market fundamentals.

After a turbulent 18-24 months since the market peaked, 2009 marked a year where transaction volume nearly came to a standstill as corporate tenants waited for clear signs of recovery and investors remained on the sidelines waiting for signs the bottom has been reached. As the year progressed, government intervention in the form of stimulus packages in the U.S., Europe and parts of Asia took hold and by year’s end many markets had begun to stabilize. However, with U.S. unemployment topping 10%, consumer demand and spending power at their lowest levels in decades and international manufacturing and trade proceeding at a crawl, the global recovery will take some time to truly stimulate economic growth.

“The past year was extremely challenging for commercial real estate, and we don’t anticipate much new demand in 2010,” said Jeffrey M. Finn, President & CEO of NAI Global. “We’re working with our corporate clients to help them take advantage of the current tenants’ market to reduce their long-term occupancy costs. Many tenants are able to negotiate more favorable lease terms today in exchange for a longer commitment. This ‘extend and blend’ practice is a trend we see continuing well into the next 18-24 months.”

Investors who have been sidelined by economic uncertainty will see tremendous acquisition opportunities in the coming year as banks and financial institutions clean up their balance sheets and move more aggressively to dispose of commercial real estate loans and financially distressed real estate assets, said Finn.

“The recession has been over for six months and job growth is just months away, but the fact remains it will be impossible to predict what will happen next,” added Dr. Peter Linneman, NAI Global Chief Economist and Principal at Linneman Associates. “With significant tax, healthcare and regulatory proposals still in the offing, there is little clarity as to the ultimate outcomes or costs. We’re concerned with commercial mortgage delinquency rates as they have been on the rise and could keep the commercial real estate industry in neutral for several more months.”

NAI Global is one of the largest real estate services providers worldwide. Headquartered in Princeton, New Jersey, NAI Global manages a network of 5,000 professionals and 325 offices in 55 countries. Now in its 24th year, NAI’s Global Market Report offers insider insight and perspective on market conditions reported by NAI experts on the ground in over 200 property markets worldwide. To obtain a copy of the full report, contact psetaro@naiglobal.com.

Vancouver Industrial Broker Garret Harper is Number One Top Producer of 2009

Garret Harper, the brokerage department’s Number One Top Producer of 2009 and an industrial specialist, makes his first appearance in the Top 5. He has been with NAI NBS since 2003, and participated in 28 deals totaling $18 million in 2009. A number of his deals were significant sales, including the $5.5 million sale of a 19-acre parcel at Birtcher Business Center to the US Army Corps of Engineers and the $4.23 million sale of a 64,000 sf Vancouver warehouse. He serves as Treasurer of the Evergreen School District Foundation Board.

Jennifer Medak and John Medak Tie for Number Two Top Producer of 2009

Office brokers and siblings John Medak and Jennifer Medak, who have both been with NAI NBS for about 10 years, tied as the Number Two Top Producers of 2009. They completed 88 deals valued at more than $57 million last year. Significant transactions from 2009 included the $8.2 million sale of Dartmouth Square in the Tigard Triangle area, and the $13 million sale of downtown’s Spalding Building. They also helped Greenbrier lease almost 40,000 sf at One Centerpointe, and brokered the $2.1 million sale of a 9,000 sf Lake Oswego office building.

MacLean Takes Number Four Top Producer of 2009 Spot

Industrial broker Scott MacLean is NAI NBS' Number Four Top Producer of 2009. MacLean has appeared on this list multiple times during his 13 years as an industrial specialist with NAI NBS. In 2009 he was involved in 54 deals valued at $27 million. He helped 24/7 Inc. lease 50,000 sf in NE Portland, and represented the seller in the $2.85 million sale of an 80,000 sf warehouse on SE Belmont. MacLean is on the NAIOP Board of Directors.

Industrial Broker Dodds is Number Five Top Producer of 2009

Steve Dodds was NAI NBS' Number Five Top Producer of 2009. Dodds has been with NAI NBS for 25 years, and participated in 11 deals valued at more than $22 million during 2009. He represented the buyer in the $8.3 million purchase of Quad 205 Business Park in Vancouver, and helped Benson Industries lease 56,000 sf on NW Yeon.

Winder Honored as NAI NBS Manager of the Year

NBS Companies honored Mark Winder as Manager of the Year in the Property Management Division at the company's annual Awards Banquet January 30. Winder joined NAI NBS in 1996 and manages the engineering services division, which consists of nineteen engineers.

In 2009, Winder was instrumental in the department’s business development, writing new business proposals and ensuring compliance on vendor contracts. He is known as a “jack of all trades” – a valuable resource for the department and its clients. He is LEED AP certified and holds a number of other engineering certifications.