Did you miss the CRA Annual Conference? We’ll be sharing articles over the coming weeks on each of the panels from the conference, written by ChatGPT.
Collateral, Cashflow, and Capital Markets in Commercial Real Estate
CRA Annual Conference 2025 | St. Louis
Panelists: Brad Harvey (Enterprise Bank & Trust), Cheryl Kelly (Thompson Coburn), Chris Van Mullem (Newmark), Constantino Panagopoulos (Ballard Spahr), Jenna Unell (Greystone)
Introduction
Commercial real estate (CRE) continues to sit at the center of financial markets, shaping both risks and opportunities for lenders, borrowers, and receivers. At the CRA Annual Conference 2025, the panel “Collateral, Cashflow, and Capital Markets for CRE” brought together experts across banking, law, servicing, and valuation to explore how professionals can maximize recovery in distressed real estate situations.
Capital Markets and CRE Distress
The panel opened with a discussion of the broader capital markets environment, which sets the stage for CRE performance. Shifts in interest rates, lending standards, and investor appetite directly influence property values, liquidity, and financing availability. Understanding these forces is essential for predicting when and where distress may emerge
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Asset Class Nuances
Not all CRE assets are created equal. Panelists highlighted how asset class distinctions—office, retail, multifamily, industrial, and specialized properties—impact both risk and recovery strategies. For example, office properties may face structural headwinds tied to hybrid work trends, while multifamily assets may remain relatively resilient due to consistent housing demand
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Property Income and Valuation
At the heart of any distressed CRE case is property income. Stabilizing cash flow is the first step in preserving value, whether through lease renegotiations, improved operations, or targeted capital investment. Accurate valuation—considering both current market income and long-term potential—is critical to determining whether an asset should be stabilized, sold, or repurposed
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Maximizing Collateral Value
Panelists stressed that receivers and lenders must focus on maximizing the value of collateral. This involves:
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Conducting rapid property assessments.
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Implementing cost-efficient stabilization measures.
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Preserving tenant relationships to maintain occupancy.
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Timing sales to align with market opportunities.
These strategies can mean the difference between a distressed fire sale and a value-maximizing transaction
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The Takeover Process and Liquidation
When enforcement actions are triggered, the takeover process requires swift action to protect property income and integrity. Once stabilized, receivers and lenders must evaluate liquidation strategies—balancing the need for speed against the benefits of waiting for improved market conditions. Sale timing, marketing approach, and buyer targeting all play a crucial role in recovery outcomes
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Perspectives from Stakeholders
The panel examined the interplay of perspectives from lenders, loan servicers, borrowers, and legal professionals.
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Lenders and servicers focus on protecting their secured positions and minimizing losses.
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Borrowers may seek to restructure or buy time for stabilization.
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Attorneys provide critical insight into enforcement rights, foreclosure options, and regulatory considerations
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Together, these perspectives shape when enforcement is pursued, how disputes are resolved, and what outcomes are considered successful.
Conclusion
The panel on “Collateral, Cashflow, and Capital Markets for CRE” reinforced the importance of aligning legal, financial, and operational strategies when navigating distressed commercial real estate. By understanding capital market forces, tailoring approaches to asset classes, and maximizing collateral value, receivers and their partners can protect stakeholders while preserving long-term value.