Lancaster PA Commercial Real Estate

NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, and Chesterfield Faring Ltd., a leading real estate restructuring group, today announced a joint venture to assist clients in need of financial restructurings.

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from the article:

Local real estate experts said they expect more properties to follow in 2010 as owners struggle to repay their debts. But the pickings might not be as rich as some are hoping, said John Thiry, a commercial real estate adviser for NAI Commercial Partners Inc. in East Hempfield Township, Lancaster County.

“The common thinking is that the vultures are circling and waiting for all these properties to go to forced sales,” Thiry said. “But what’s really happening is not quite that dire.”

Lenders are more likely to work with debtors rather than list properties at a sheriff’s sale, where they are likely to take a loss, Thiry said. Banks typically get about 60 cents on the dollar from the sale of delinquent properties, he added.

Thiry cited Red Rose Commons, a Lancaster shopping center owned by Blue Bell-based The Goldenberg Group and Philadelphia-based Pennsylvania Real Estate Investment Trust, or PREIT. With the center facing possible foreclosure, Goldenberg and PREIT managed to refinance their debt last fall.

“The vast majority of those distressed-debt situations are getting worked out,” Thiry said.

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Sheriffs hold real estate keys – Central Penn Business Journal.

The Patriot News reports parent company of Harrisburg-based Graystone Bank to acquire First Chester County Corporation.  This action strengthens the widely held notion that Graystone Bank is currently one of the few local banks looking to do deals.  In a recent conversation, a Graystone LO recently remarked to me that “we are here and healthy” and that they are looking for deals that make sense.

These statements highlight what I see as the current commercial lending climate in Lancaster County:  You can get financing for your commercial deal if your project pencils (debt coverage ratio greater than 1.2), you have sufficient down (20% or greater) and a track record of previous success.

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