Real Estate Investors Skip Paying Loans While Raising Billions
- Mall and hotel CMBS debts go into default as Covid hits value
- Some lenders are willing to sell back loans at a discount
Photographer: Michael Nagle/Bloomberg
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Some of the largest real estate investors are walking away from debt on bad property deals, even as they raise billions of dollars for new opportunities borne of the pandemic.
The willingness of Brookfield Property Partners LP, Starwood Capital Group, Colony Capital Inc. and Blackstone Group Inc. to skip payments on commercial mortgage-backed securities backed by hotels and malls illustrates how the economic fallout from the coronavirus has devalued some real estate while also creating new targets for these cash-loaded investors.