Eric Roth of Friedman-Roth Realty Services LLC
December 26, 2011 - Spotlight Content
What was your most notable project, deal or transaction in 2011?
The most notable and exciting transaction of the 35 that we have closed this year was the purchase of $8 million of non-performing debt that encumbers the Flatiron Hotel. The collateral is comprised of a newly renovated 64 room boutique hotel at the corner of Broadway and West 26th St.
Prediction for 2012
As for non-performing debt sales, I see the potential for significant changes in 2012. It was quite common to be offered notes for sale whose borrower had not paid debt service for 9-12 months. Now, some lenders are marketing their non-performing debt within 2 months after a borrower's initial default. A quicker sale by a lender can reduce their liability, lessen expenditures on legal fees and diminish or eliminate the need to make protective advancements. Consequently, this change may result in the reduction of spreads and a buyer's profit.