The Distressed Property Market: Opportunities Ahead With Brian Good

Real Finds Podcast

In this episode of The Real Finds Podcast, host Gordon Lamphere takes a deep dive into the complexities of the current real estate market with Brian Goode, the Managing Partner of iBorrow. Together, they unravel the latest trends shaping lending practices, asset classes, and distressed property redevelopment. This conversation explores the slower-than-expected market and the challenges that remain under the surface, such as distressed assets that have yet to materialize. The duo discusses how lenders and investors find opportunities through creative financing and why non-recourse lending is becoming attractive.

The conversation also touches on the dynamics of key asset classes—retail, multifamily, and industrial—and the future of each. From the surprising resilience of retail to the multifamily sector’s dip in value, Goode and Lamphere offer their take on how these markets are evolving. Additionally, they highlight the growing interest in cold storage as a high-demand asset class and discuss the potential of regional malls, emphasizing how low purchase prices and new leasing opportunities could revive struggling shopping centers.

One of the major themes explored in this episode is the impact of migration patterns on real estate decisions. Goode offers insight into how migration trends influence lending decisions and investment strategies, while Lamphere examines the shifting balance between suburban and downtown real estate markets. They also explore the distress in the office sector, touching on financing challenges and the complexities of converting office spaces into residential buildings. This process often results in unattractive or inefficient designs.

In a forward-looking discussion, the conversation shifts toward the role of AI in real estate, with Goode sharing how technology is already transforming lending and market research. They emphasize that professionals must stay ahead of the curve by embracing AI tools to improve efficiency and gain a competitive edge. The episode wraps up with valuable advice for young professionals in real estate: network aggressively, continue learning, and pay close attention to market trends to identify opportunities.

Key Takeaways:

• The real estate market is recovering slower than many predicted this year.
• There are still pockets of distress in the market that haven’t surfaced yet.
• Creative financing and non-recourse lending offer borrowers much-needed flexibility. - Private lenders are becoming more attractive compared to traditional banks.
• Retail properties are showing signs of strength, outperforming the office sector. - Multifamily values have seen a notable decline in recent years.
• Cold storage is emerging as a high-demand asset class with growth potential.
• Regional malls may experience a resurgence due to low acquisition prices and leasing opportunities.
• Migration trends play a critical role in determining project viability and financing options. - Insurance costs are rising, making certain investments riskier in high-cost states. - Suburban markets are outperforming downtown areas in many metros. - Office buildings face significant challenges, with limited financing and high mothballing costs. - Office-to-residential conversions are complex and often result in unattractive outcomes. - AI is revolutionizing the real estate industry, improving operations and decision-making. - Lenders favor portfolios with a strong mix of industrial and multifamily assets. - Young professionals should prioritize networking, continuous learning, and staying updated on market shifts.