So much of commercial real estate is financed that it’s impossible to overstate the influence of loans and the documents that evidence loans, including the notes and additional documents that secure the repayment of those loans. These loan documents are so significant that they’ve become an entirely separate asset class that can be bought and sold on the open market. The factors taken into consideration when buying and selling these loans and determining their value has more to do with legal and economic issues than the actual real estate securing these loans.
Listen in as Eric Paulson and Bob Kline join Howard to discuss the current state of the market for the sale and purchase of commercial real estate loans, where the loans can be bought and sold, what to consider when buying and selling these loans, and how to maximize your return.
Mr. Paulsen has been involved in the real estate industry since 1988, focusing primarily on acquisitions and dispositions of commercial real estate. In 2011, Mr. Paulsen was engaged to form Auction.com Commercial, an entity focused on transacting third party, loan and commercial asset sales utilizing an online based auction platform. Since joining, Auction.com Commercial has transacted over $5 B in CRE asset sales across the US and Germany via online auctions.
Prior to 2011, he was Vice President of Acquisitions/Dispositions for LNR Property Corp. with the responsibilities of acquisitions and dispositions nationwide, sourcing transactions, underwriting cash flows, performing due diligence, and closings. He sat on the Investment Committee and oversaw all acquisition/disposition financial underwriting, the LNR Marketing Group and related analysts and administrative staff. In his 10+ years at LNR, he was involved in the acquisition or disposition of over $3 B in CRE.
Prior to joining LNR, Mr. Paulsen was a Vice President at CB Richard Ellis for 12 years focused on investment sales of CRE. He was involved in the sale of 96 properties consisting of over 10.5 million sq. ft. with an approx. market value of $1 B. He is a member of NAIOP, ICSC and sits on several boards. Mr. Paulsen holds a Bachelor of Arts degree from the University of California at Los Angeles.
Bob is an intuitive, experienced executive with over 30 years of successful leadership in the capital markets and commercial real estate industry. Mr. Kline’s firm specializes in capital markets debt and equity platforms, CMBS and commercial loan modifications, note sales, restructuring, commercial brokerage and mergers & acquisitions.
Over the past 48 months, Mr. Kline has facilitated more than 500 note sales in the last 2 years, and $5.1 B in restructurings. The Capital Markets team has placed over 2 billion in capital in the CRE market last year. Both rescue and co-invest capital are his primary business. His niche is working with clients, lenders and servicers to recapitalize and restructure both CMBS and conventional loans for companies with hospitality, gaming, retail, multi-family, mixed-use, industrial or office properties. Kline works with over 170 servicers and lenders. R.W. Kline Companies also provides full service real estate and debt & equity capital markets platforms across the America’s with 7 offices and 60 associates.