The major decline in real estate prices the past two years has resulted in the availability of a large number of troubled real estate development properties. Some are from developers whose projects are subject to pending foreclosure or distress sale. Others (either individually or as part of a portfolio) are from lenders who have already foreclosed or taken properties back by deed in lieu. In addition, a number of lenders holding defaulted real estate loans are seeking to sell those loans, again either individually or as part of a portfolio. Finally, portfolios of property and defaulted loans are expected to become available as a result of the recent Emergency Economic Stabilization Act. Some of the distressed real estate assets becoming available require targeted and specialized expertise, particularly those in the process of development or sales, or where there may be a need to reprogram or redevelop to extract a property’s value. For example:

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