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Is the Worst of the Cycle Still Far Ahead of Us?

Trepp LLC released a report in March that suggested loan losses were continuing to mount this was due in large part to new appraisals on properties transferred…

By Jim Amorin - Immediate Past President of the Appraisal Institute in Washington, DC. | Updated on May 01, 2010

Trepp LLC released a report in March that suggested loan losses were continuing to mount this was due in large part to new appraisals on properties transferred to loan servicers. The optimism experienced during the CMBS boom has been replaced by more realism as values are continuing to decline in many markets.

The Westin O’Hare Hotel in Chicago, for example, was originally valued at $131 million, but the most recent appraisal came in at $33.9 million, a decline of more than 74%.

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