Thompson Coburn partner Simran Bindra discussed the growing momentum of portfolio sales for commercial real estate in an interview with GlobeSt.com. The potential trend could allow a reduction of financial pressure and a return to greater stability.
"Sales of loans at a discount for troubled and non-performing assets is an increasingly viable option for banks," Simran said. "Banks like the optionality as the loan sale is one of the few things a lender can do unilaterally." Other remedies typically need borrower cooperation. "Although banks can always foreclose on assets, doing so comes with its own set of issues in terms of frictional costs and potentially being responsible for the operations of a property. For certain assets, such as hospitality assets or others that require constant monitoring and operations, that is something to avoid."
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