Private Commercial Real Estate Lending Company Steps in to Bail Out Banks When the Government Can’t

June 22, 2010 • Boulder, CO – ICP Financial, America’s best source of private financing for commercial real estate properties in distress, announced today that with the tidal wave of commercial property foreclosures sweeping the nation, it is stepping in to help bail out banks and commercial real estate owners from their problem properties.

According to its Managing Director, Brad Wozny, “Everyone’s aware that there is a tsunami of commercial real estate loans coming due, and also many more loans that are adjusting. But commercial property values are down more than 27% nationwide since 2008.” Similar to the housing crisis, banks cannot extend commercial real estate loans or refinance those problem properties in even the biggest markets in the nation. Says Wozny, “Historically, we just saw the biggest fire sale on commercial real estate in New York City last week and it will continue.”

These signs of troubled times, Wozny says, points to a major problem faced by the nearly 6,000 community and mid-sized banks that have been lending on commercial real estate for the past seven years. Because while the government bailed out big banks that had given loans to homeowners and were facing problems themselves, there is no bail out money available for the banks that have provided loans to commercial real estate investors.