Who’s Lending in the Distressed Space?
Bridge funding helps rehabilitate old, troubled commercial real estate
For the commercial real estate industry, distressed properties remain a nagging problem six years after the collapse of the market. Although many conventional lenders continue to demonstrate a hands-off policy on funding such properties, bridge lenders have emerged as an important solution to the problem of how to fund distressed buildings, especially in the multifamily and hospitality sectors.
The glut of distressed properties occurred because for several years after the recession, many owners did little or nothing to maintain their properties in peak condition for financial reasons. As a result, the industry is ripe with investors looking to buy distressed assets.