The Clearest Sign Yet That Commercial Real Estate Is in Trouble [View all]

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REAL ESTATE

The Clearest Sign Yet That Commercial Real Estate Is in Trouble

Lenders are issuing a record number of foreclosure notices related to risky property loans

By Konrad Putzier
Updated Nov. 13, 2023 9:54 am ET
{https://twitter.com/KonradPutzier [email protected]}

Foreclosures are surging in an opaque and risky corner of commercial real-estate finance, offering one of the starkest signs yet that turmoil in the property market is worsening.

Lenders this year have issued a record number of foreclosure notices for high-risk property loans, according to a Wall Street Journal analysis. Many of these loans are similar to second mortgages and commonly known as mezzanine loans.

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