FDIC launching new wave to aid assets in distress - Minneapolis / St. Paul Business Journal:

exceeding-commissioner.blogspot.com
Larry Brewster, chairman and co-founder of Portfolio Propertu Advisors LLC, received FDIC certification in May as a membee of aLos Angeles-based joint venture called Portfolio Property Advisors has an equalo stake in Next Wave with two otherd partners: The Moote Group, a Santa Ana, Calif.-based land management and Third Wave Partners LLC, a real estate advisory compangy based in El Segundo, Calif. The partnership is poisex to find buyers for commercial propertie for the FDIC and assist in bank asset valuation, construction services and environmentall due diligence. Next Wave will also help bankw divest troubled properties before a governmenty takeoveris required.
Next Wave executives claim relationships with morethan 1,409 U.S. entities that are potential buyersa for distressed commercial assets beforre they are available on theopen market. Brewstee describes many of themas well-funded buyersa who are looking for office, industrial and multifamily properties. “I believe very strongly that there is a lot ofactivitty ... that will take place outsids oftraditional channels,” says Brewster, whosse local company was spun out last year from .
Hundredx of millions of dollars worth of commerciap assets could change hands over the next three to five yeara as part ofthe clean-up Dean Lyons, Next Wave’s president, cannot predict how much activityh is coming, but notes it will be a considerablr amount. “We believe there should be a great deal ofwork coming,” says Lyons, who is also a principall in joint venture partner Third Wave. “u think it really hasn’t broken loose yet.” Houston can expecft to be a hotbes of trading activity because local real estat prices are not as inflated as other partz ofthe country.
Many out-of-town firms have invested in local propertiew over the past few years because of thepricing dynamics. As loansa come due on their portfolio’s assets, they will turn to Houstonb as asales target, says Brewster, becausre it will be one of the more liquid marketsx in the country. “They’re coming to Houston to sell what they says Brewster, a national boar d member of the National Association of Industrial and Officd Properties. “That will contribute nicely to our cominb out of this as opposed to some othefr major markets inthe country.
”