Reis Inc. has released Value Alert, a tool that identifies potentially troubled commercial mortgage assets that warrant further scrutiny. Value Alert analyzes properties and portfolios, pinpointing properties whose debt coverage and loan-to-value ratios have likely eroded and may have difficulty refinancing in today's tight credit market.
‘Everyone is struggling with developing a method for determining the value of complex mortgage-related investments," says Lloyd Lynford, Reis' CEO. "In our judgment, there is no satisfactory answer to that question without understanding how changing market conditions have impacted a property's cashflow and value. By precisely measuring changes in supply, demand, rent and price for each property's competitive submarket, this product provides banks and all investors with a concrete, unbiased, quantitative methodology for addressing this paramount issue.’
The tool provides an instant indication of how a property's value is likely to have changed since the property was acquired or the mortgage was originated, the company says. In 1,800 U.S. real estate submarkets, the tool measures the shift in net operating income and property values, and delivers results that can be directly applied to individual assets in a user's portfolio.