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CBRE Group, Inc. Message Board

  • pdxspace pdxspace Oct 24, 2008 2:43 PM Flag

    Refinancing Debt is Expensive Now

    So you all are saying CB would refinance debt....but how much will it cost them? 8%-15%?? AND who is lending? so will they refinance with expensive debt or liquid some assets to get them off the books??? thats right the vulture investors are out there and i know many that would take some assets at 50-80 cents on the $$$.

    Trammell Crow individual assets could be over leveraged and may not have the cash flow to service debt? Remember, office retail and industrial tenants are failing and/or shrinking space usage, hence reduce revenues. Not many tenants are taking up new space.

    Oh yeah, my sources tell me they are letting salary people go (which will reduce overhead) and the younger brokers and appraisers or those that aren't on their bosses favorite list will soon depart since there is no work to do short term. my sources work at CB.

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    • pdxspace, darling, you obviously have a lot of free time on your hands as you slowly dwindle your Lehman Bros. severance package but before you rest on your own laurels....

      For one thing, CB is a brokerage house, I suppose you could liquidate some assets but I think the flat screens in the conference rooms are a little out of date.

      We all really appreciate you sharing your internal CB sources, I had actually heard the same thing, from my internal source, the Wall Street Journal

      To quote billy madison, which i am sure is a personal favorite

      What you've just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it.

      • 1 Reply to floydtrojan
      • i've read alot of stuff on these message boards over the years. i don't post too much. but i had a real good laugh about CBG needing to liquidate assets to repay debt. and then citing the inside sources. wow......

        as others have noted, CBG earns money through offering various services and getting paid a fee for such. things like property sales (properties that other people own, not them), appraisals, property mgmt, leasing, etc...

        maybe a review of the definition of full service real estate brokerage would be a clue. or even click on the "profile" on the yahoo page. that would be a gentle reminder also.

        p.s. i shorted this one at $23 but covered at $18. i'm almost as dumb as the poster above.........

    • Please post more opinions so I can invest opposite your advice on more companies!

    • davinci43 Oct 24, 2008 6:08 PM Flag

      Glad to see these arrogant SOBs are finally getting what's coming to them. Hope all the brokers are having fun living on those 50/50 splits with revenue down 80%. Great platform, huh? People are bailing left and right.

    • lol. whos your source...a receptionist? and admin?

      whoever it is doesnt know the business at all and is hardly a credible "source"

    • Also institutional investors within (Trammell Crow & CBRE Investors) may want their equity from various investments and development projects. If there are enough investors wanting the same thing, they'll have to liquidate assets. This could be good or bad...depends on the outcome obviously.

28.80Jul 28 4:02 PMEDT