'Vultures' circling commercial properties

Now that the housing crash appears to be nearing bottom, all eyes have turned to offices, hotels and other commercial real estate as the next properties that might be poised to collapse.

So-called vulture investors have begun popping up in search of troubled commercial buildings, which they hope to acquire at steep discounts.

In San Diego, the latest of these investors is Cypress Realty Advisors LLC, founded by commercial real estate veterans Ron Lack and Mark Wayne.

They say they have commitments from wealthy investors – they wouldn't disclose the amount – to help fund the purchases of offices and other distressed commercial properties in San Diego County, Orange County and Silicon Valley.

“Look at anybody who purchased commercial real estate in the last three years, 2005 to 2008. They're upside down,” said Wayne, a former broker with Cushman & Wakefield. “Their equity has evaporated, their occupancy has evaporated, and their debt is maturing.” Full Story