The uptick in bank failures is further deteriorating the nation’s liquidity crisis, according to Andy Bogdanoff, chairman of Remington Capital, an international
commercial real estate investment banking company based in Scottsdale, Arizona. This surge in bank closings may ignite more bankruptcies for commercial real estate owners in need of financing, he warns.

“With $1.2 trillion in commercial real estate debt scheduled to mature over the next few years and most U.S. banks unable or unwilling to extend new credit, the need

for large amounts of private commercial capital has never been greater,” Bogdanoff said.

Approximately 250 banks have failed since 2007, which involved hundreds of billions of dollars in assets.

“With hundreds of additional bank failures expected over the next few years, many commercial real estate owners may be unable to finance or refinance properties through traditional banking sources,” according to Bogdanoff.

He said, “Alternatively, there are billions of dollars in private capital available waiting on the sidelines from lenders and investors ready to step in to finance, refinance, or recapitalize all types of commercial property having intrinsic value.”

These alternative funds are a “unique opportunity” for those in commercial real estate to explore new possibilities of commercial financing, Bogdanoff added.

Remington Capital, which specializes in providing access to commercial capital sources, including hundreds of active private lenders and investors, has arranged more than $5 billion in financing for all types of commercial property since 1993.