Capmark Increased Office, Hotel Loans as Zell Saw Top

[Grinchie]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPaDnQIVdxi4

Commercial Property Values

Commercial property values in the U.S. have plunged. The Moody’s/REAL Commercial Property Price Indices fell 3 percent in August from July, bringing the decline to almost 41 percent since October 2007, Moody’s Investors Service said Oct. 19.

Vacancies at U.S. office buildings are at a five-year high, a 23-year record for apartments and the highest since 1992 for retail centers, according to real estate research firm Reis Inc. All that unleased space makes it harder for landlords to pay their mortgages to lenders such as Capmark.

“Capmark’s ability to raise new real estate investment funds was severely constrained by adverse real estate market conditions, which have also negatively impacted the performance of the investment funds CFGI’s subsidiaries manage,” Thomas L. Fairfield, Capmark’s general counsel, said in an affidavit filed in the bankruptcy case.

Capmark struggled for months to avoid bankruptcy. In December, it applied to the Federal Reserve System to become a bank holding company, and then withdrew the application, according to Fairfield.

In March, Capmark negotiated with lenders to extend an $833 million bridge loan, Fairfield said. In September, Capmark agreed to sell its mortgage servicing unit for $490 million to Berkshire Hathaway Inc. and Leucadia National Corp.

The case is In re Capmark Financial Group Inc., 09-13684, U.S. Bankruptcy Court, District of Delaware (Wilmington).

The quoted text above is at the tail end of the article. The astute reader will notice that Capmark has been in serious trouble since December of 2008, and through the magic of the Bailout, was able to stay alive until last Sunday. Capmark, was formerly known as GMAC according to an earlier Bloomberg report on Sunday.

Please note that Capmark owes Citibank N.A. nearly 5 Billion Samoleans...

I wonder how many people are employed by Capmark. You think that they might be out of a job for Christmas?

Yep, the "Recession is Over"!, now the real failures can start and clean out this crap in a "Orderly Fashion". Uh Huh.