Eric Goldberg Quoted in Commercial Observer on How the Debt Limit Debate Is Impacting Commercial Real Estate

Olshan Real Estate partner Eric Goldberg was recently quoted in a Commercial Observer article about the current debate between the White House and Congress over whether to raise the nation’s debt ceiling before the June 1^st deadline set by the Treasury Department and the ramifications that a debt default could have for the commercial real estate industry. “I’d expect there to be more loan defaults because of the pressure on interest rates,” Eric said. “There are floating-rate loans today that will get higher, and thus more difficult to refinance, and loans that are in the shop today that people are looking to close, that either won’t close or close with less proceeds as the rates go up. It would make an already difficult commercial marketplace that much more difficult.” On the debate’s resolution and aftermath, he concluded, “I think it will get resolved at the last minute, but just because it gets resolved doesn’t mean there won’t be a lot of pain getting there. Interest rates will go up because of the uncertainty, and they won’t go down as soon as the Treasury and Congress resolve the debt limit issue.”