Commercial Real Estate: A Rose Among Thorns? John B. Levy & Company Finds Few Positives Budding in Today’s Commercial Real Estate Market

Richmond, VA (PRWEB) April 19, 2009

Conditions that scorched the commercial real estate market in fourth quarter 2008 showed no signs of abating in January and February of 2009, dashing hopes among developers and investors alike that there might be an uptick in sales and refinancing activity in the new year. Market watchers in the crowd longing for the days of 2007 discovered the disappointment of looking at the world through rose-colored glasses.

“Every Thorn Has Its Rose” is the latest in a series of timely, informative podcasts produced by John B. Levy & Company, and it provides clients and analysts with a sobering vision of what they can expect in today’s commercial real estate market. This new podcast is available online at

“Any hint of rosy optimism has been overrun with thorns,” says John Levy, founder of John B. Levy & Company. “Most real estate owners, developers, and investors are beginning to realize that commercial real estate isn’t going to recover in 2009, and probably not in 2010.” He adds, “we’re looking toward 2011.”

Levy offers a couple reasons for his assessment. First, of the top one hundred largest markets in the United States, ninety are still showing job losses, indicating that the current recession is both deep and wide. Jobs drive the demand for multifamily housing, and they create the need for retail and office space. In addition, commercial real estate is a lagging, not leading sector.

“When the subprime financial market was going over Niagara Falls backward in a canoe in 2007,” Levy says, “those of us in the commercial sector were doing just fine. That said, we shouldn’t expect commercial real estate to lead us out of this recession.”

While it’s difficult to be optimistic about today’s market, Levy says there is a rose among the thorns, but it is in the budding stage. First, the federal government is pushing massive liquidity into the commercial real estate market via TARP and TALF, and these programs are starting to show promise. For example, spreads on commercial mortgage backed securities (CMBS) have tightened more than 500 basis points. Levy also believes we might see the rebirth of CMBS securitization by the end of the year, and the prospect of rejoining securitization and commercial real estate is a huge step in the right direction.

“In the meantime,” Levy says, “the biggest problem owners and developers face today is that their loans are maturing and they lack financing opportunities. Almost $ 300 billion in commercial real estate loans is coming due in 2009, and more than $ 200 billion comes from bank loans. This situation creates a major challenge.”

Levy suggests that owners and developers hire experts to assemble a financial package and help with strategy and negotiations. He also recommends that those with properties suffering from negative cash flow avoid using personal cash to keep the note current. Instead, that cash can be used as a principal payment or as additional collateral for negotiations and loan extensions.

Finally, Levy suggests, those with a CMBS loan should ask in writing – not over the phone – for their loan to be transferred from the master servicer to the special service. This strategy is helpful because only the special servicer can extend the loan or offer forbearance.

“Now is not a good time to be out there all alone,” Levy says. “We’re in uncharted waters right now, and a lot of owners and developers need help. This market is dicey.”

Firm Background

John B. Levy & Company, Inc. is a real estate investment-banking firm headquartered in Richmond, Virginia. Since John Levy founded the company in 1995, the firm has structured over $ 3.5 billion in financing for developers and owners of commercial and multi-family projects nationwide, often investing its own proprietary funds into transactions with its clients. Mr. Levy is an expert on commercial real estate financing and the effects of interest rates on commercial real estate markets. He is the originator and author of the Barron’s/John B. Levy & Company National Mortgage Survey, a monthly survey of more than 30 of the country’s largest institutional investors, as well as buyers and sellers of commercial mortgage-backed securities, which Barron’s published for over 23 years. Mr. Levy is also co-creator of The Giliberto-Levy Commercial Mortgage Performance Index (sm), the first and pre-eminent index to measure and analyze the performance of investments in the commercial mortgage industry. Additionally, he is a member of the Board of Directors of Anthracite Capital Inc. (NYSE: AHR), a New York Stock Exchange REIT managed by BlackRock, Inc and a former director of Value Property Trust.

For more information about John B. Levy & Company, please visit the firm’s website at or call Andrew Little at 804-644-2000, extension 260.


Related Securitization Press Releases

John T. Moss (Spirit) Appointed to Bluestone America Advisory Board

Los Angeles, CA (PRWEB) June 26, 2010

Bluestone Americas President, William Soady, announced the appointment of John T. Moss (Spirit) as Advisory Board Member for Bluestone America. John T. Moss (Spirit) is currently the Chairman of The Board/Founder of the Native American Trade & Information Office, a Division of Caddo Assets Services Help (CASH) Community Development, (a 501(c) (3) organization). Mr Moss is a member of the Caddo Nation of Oklahoma and highly respected in both, the Indian tribal governments and the US government agencies, which deal with tribal laws and issues.

Mr Moss previously served as consultant to a leading international investment and merchant bank based in the US, active in Asia and Middle East. John acted as a key member of the negotiation and deal team, advising on cross border merger and acquisitions involving a $ 4 billion commercial bank from emerging markets, interfacing with senior level management, providing counsel on due diligence, financial analysis, strategic planning and investment recommendations to the buyer.

Our Indian managed non-profit goals, with its two divisions, are to provide funding and Tribal ownership in economic project development, education in business & personal finances, economic strategies & instruction on implementation; we play an important role in bringing self reliance to our great Indian Nations said John Moss.

John has received commendations by the City of Los Angeles and other government bodies for his work in both, the business community and his non-profit organizations established to advance the American Indian Nations.

Mr. Moss, his organizations and contributions are featured in the June 22nd, 2010 edition of Indian Country Today (a national American Indian publication).

“John brings to Bluestone America an extensive background in both business and non-profit organizations established to advance the America Indian Nations. Johns involvement and dedication to the development of Indian owned and operated business will give Bluestone the insight to effectively serve the financial and funding needs of gaming, hospitality and resort developments. The American Indian Nations have a very complex and developed business hierarchy in which John has been active in for many years. We are looking forward to serving this market as well as counting on Johns guidance and participation said William Soady.

About Bluestone America:

Bluestone America is a conglomerate of domestic and global-based companies whose focus is asset management, asset based project securitization funding and acquisition of alternative assets. The members of the management and advisory boards of the Bluestone group of companies have broad based expertise in financial business development and banking in the Middle East, United States, South Korea, Brazil, Taiwan, Hong Kong, China and other key international financial and business centers.

Bluestones management and advisory board members are multi-cultural representing Asia, South America, North America, Africa and the Middle East. Bluestone America has developed various methods of securitizing asset based long-term real estate development projects using Non-Correlated Longevity Assets. These methods and techniques are proprietary intellectual properties developed and owned by Bluestone America.

For more information on Bluestone America:

Info (at) BluestoneAmericaInc (dot) com


John Levy Claims the Business True Estate Market place is Gaining Steam After Four Many years in the Tank

Richmond, Virginia (PRWEB) March 29, 2013

John Levy not too long ago appeared on Fox Enterprise with host Tracy Byrnes to examine the industrial actual estate marketplace.


Following 4 intestine-wrenching a long time in the tank, commercial actual estate is staging a robust comeback. Revenue in 2012 were up a whopping 24%, although entirely a third of that action transpired in the 4th quarter.


Curiously, despite the strong comeback, peak costs are even now on average 20% under the 2007 peak. The sole exception is no shock multifamily, the place some 15 marketplaces are ahead of peak pricing, led by Manhattan, San Jose and San Francisco. We see the market place broadening in 2013 from 10 main markets to fifty marketplaces throughout the region, owing in no little part to the revival of securitized lending (CMBS).


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