Chicago Chapter of SIOR Luncheon Focuses on Receiverships and Distressed Asset Outlook

(L-R): Kirsten Bowersox, Principal and Chief Operating Officer, Xroads Real Estate Advisors; Ryan Moen, SIOR, Vice President, SIOR Chicago Chapter; and Adam Toosley, Partner, Smith Gambrell Russell

On April 23, 2024 the Chicago Chapter of The Society of Industrial and Office Realtors (SIOR) hosted its Speaker Series Luncheon at The Glen Club in Glenview, IL. Ryan Moen, SIOR, Vice President of SIOR Chicago Chapter and Principal and Co-Founder of Versa Real Estate Services welcomed Kirsten Bowersox, Principal and COO of Xroads Real Estate Advisors and Adam Toosley, Partner with Smith Gambrell Russell, to discuss the state of receiverships, REO and distressed assets.

Key takeaways include:

  • Many assets described as distressed should more accurately be described as value impaired.
  • Distinguishing between stressed and distressed assets is vital, particularly in the commercial mortgage-backed securities market, where servicers grapple with cash traps on performing assets strained by interest rate pressures.
  • Asset foreclosure timelines can also vary, with some lenders opting for swift foreclosure while others prefer placing them under receivership for longer periods.
  • Quick decision-making and substantial financial resources are required for participating in foreclosure sales, favoring those with immediate capital access, therefore limiting the buyer pool.
  • Receivership, appointed by court or lender, can be a powerful tool for rejuvenating distressed real estate.
  • Effective communication becomes one of the most important things for borrowers of distressed assets, while at the same time understanding the nuances between special servicers or traditional lenders and tailoring the communication accordingly.

More than 60 SIOR members and guests attended the luncheon.

About SIOR Chicago Chapter

The Chicago Chapter of the Society of Industrial and Office REALTORS ® (SIOR) boasts 165 elite commercial and industrial practitioners in the Chicago metropolitan area real estate market. Real estate professionals who have earned the SIOR designation are recognized by corporate real estate executives, commercial real estate brokers and agents, lenders, and other real estate professionals as the most experienced, capable and ethical practitioners in any market. The global SIOR organization holds more than 2,800 members in 480 cities in 20 countries. A professional affiliate of the National Association of REALTORS®, SIOR maintains a commitment to business and industry by providing outstanding professional services, publications, and educational programs. For more information, visit our website or follow us on LinkedIn or Instagram.