Acquisitions

By Nicholas Minoia, owner, Diversified Properties Changing consumer behaviors and financial pressures stemming from the COVID-19 pandemic, coupled with an inevitable rise in interest rates, will soon trigger the release of a wave of distressed real estate assets that will hit commercial markets across the nation. As this wave of distressed assets begins to crest in the months and years to come, creative and experienced investors will be afforded rare opportunities to uncover value across asset classes in some of the most competitive regions in the country. However, as these properties often represent the most complicated and high-risk types of investments, it is important that investors fully understand not only how to identify and value distressed assets, but also how to create a strategy that will allow them to unlock the value hidden in these unique properties. Identifying Distressed Assets The complexity of modern real estate ownership means that stress can come at any point for a property, and from countless directions. Family or joint venture ownerships might run into partnership disputes or estate issues. A developer might suddenly face costly environmental concerns, legal challenges, significant supply chain shortages, price increases or problems with a contractor. A long-term owner could …