Lehman Selling 14 Billion in Real Estate To BlackRock?
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The rumor swirling around this morning is that Lehman Brothers is trying to improve it’s credit position and to do so is looking to unload sell 14 billion in commercial real estate. Others are also looking to buy some or all of these assets but BlackRock is the leading contender.
The tight credit market is making the big boys make decisions that they normally would not do. Selling over a third of their real estate assets in 4 months typically is not the right move for a bank. But with the credit market tight and bad lending decisions popping up all over the place, Lehman is in need of cash.
Of course, you have to wonder how big of a haircut they will take selling into a slow commercial market to begin with. If they were not in such a big hole, do you think Lehman Brothers would even think about selling these properties?
Lehman’s balance sheet has about $40 billion of commercial real estate and related securities on its balance sheet.
“Clearly this area of exposure Lehman has is weighing on its credit,” said Jason Brady, portfolio manager at Thornburg Investment Management in Santa Fe, New Mexico.
Reducing commercial real estate exposure could force another $1.5 billion of write-downs, Merrill Lynch analyst Guy Moszkowski wrote in a report on Wednesday, adding that the level of the write-downs would depend on the size and terms of any sale. via Reuters.
It probably is a really good time to buy real estate - monthly payments are about equal to market rents ...
The part about the inventory is right on but in my area they are mostly low end and beat up ...
I worked for this man, he is a great con man and has done this in more than States then ...
You're right. If you come from Central Jersey (as the Boss and I do), you go to Florida at some ...
Maybe it was kryptonite...
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By Mike ...
I couldn't agree more.
The newspaper has always "stuck" it to the real estate agent with rates that were much higher ...
By the way, homeowners trying to get short sale approval should be aware that lenders are comparing the initial loan ...
Ouch! Thankfully I haven't come across anything like that yet. We normally don't have situations like that in ...
well, the guy was here illegally.
serves him right. 
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