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Recoveries on Distressed Real Estate and The Relative Efficiency of Public versus Private Management
Author(s) -
Curry Timothy,
Blalock Joseph,
Cole Rebel
Publication year - 1991
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00564
Subject(s) - receivership , real estate , agency (philosophy) , business , finance , government (linguistics) , asset management , capitalization rate , property management , asset (computer security) , economics , real estate investment trust , philosophy , linguistics , epistemology , insolvency , computer security , computer science
This study examines average recoveries from distressed commercial real estate assets held by FSLIC receiverships, and explores differences in the relative efficiency of public versus quasi‐private and private entities in the management of these assets. It finds that properties located in markets with rising per capita income and properties that were judged to be less difficult to manage and sell provided higher recoveries, while properties with smaller writedowns prior to government takeover provided lower recoveries. The analysis also provides evidence that quasi‐private management by the Federal Asset Disposition Agency provided higher mean recoveries, while private management by contractors provided lower mean recoveries than did public management by FSLIC receivership staff.