The market is coming back, but it likely doesn't apply to you.....

This article will start off telling us that everything is getting better and that liquidity is returning to the market resulting in transactions to be completed.

The detail is, that is only true of institutional grade Sponsorship, core assets, and credit tenants in tow. The excerpt below was deep, deep in the article and applies to most Sponsors, assets, and tenants.

A Bifurcated Market

Excerpt from: First Quarter Bank Results: Potential for CRE Armageddon Fading; Mark Heschmeyer CosStar

Class A properties are doing well and probably are doing better than anybody might mark them, so actually we're not in the business of selling those even though we might have taken a mark on them when we took them in. Those properties tend to come back with the economy, and that's the right thing to do.

The C properties, you just sell. C property rarely comes back so you take very strong marks on those right up front and you just sell them because they always have trouble recovering at all. So we've been actively doing that and we're comfortable with our marks.

The B properties, obviously the majority of the portfolio, but those are the ones you mark down and you have to manage one by one… So that's a plus, and I think the commercial real estate business over time, if a property loses a tenant, clearly that property has less value as you know. But then they go resign somebody else at a lower lease rate, so the property is worth less, but it's not like it falls off the planet. There is some cash flow. So I think those B properties, I think will work their way through for the most part.

James Rohr, Chairman & CEO, PNC Financial Services Group Inc.

Core Ventures, LLC capitalizes distressed multi-family and other commercial real estate assets. If you are an owner or lender that needs liquidity to consummate a transaction, please contact Core Ventures for more details.