Distress Investors May Have to Wait for Non-performing Loans to Come to Market

Distress investors have been racing to the market in anticipation of snapping up deals. For the most part they are finding, to some chagrin, that there are little properties and loans available at deep discounts. There has been much positing about when these transactions will come to market—the end of summer and the fourth quarter are two popular timelines—but a better question might be to ask, why are there no distress deals available now? That answer in turn becomes a straight line to the question of when. 

CBRE analysts believe one major reason for the lack of distress on the market is that most lenders, outside of CMBS, are being very accommodative to troubled borrowers.