Senator Robert Menendez (D-N.J.) has introduced a bill to make it easier for owners of commercial real estate to access private capital from overseas.
Senator Menendez
The measure, which was re-introduced by Menendez and Senator Mike Enzi (R-Wy) is intended to head off another potential mortgage crisis, encourage job growth and help business owners avoid foreclosure.
Commercial real estate loans worth more than $2 trillion are expected to become due within the next five years. Menendez says that if borrowers who are experiencing financial difficulties as a result of the economic downturn are not able to make their payments, these commercial properties will go into foreclosure.
He said, “Commercial real estate properties throughout the nation are confronting an equity crisis that we must address.”
The Real Estate Investment and Jobs Act would change the tax rules which discourage investors from outside the United States from investing in the country.
Menendez pointed out that increasing investment in commercial real estate will have a positive effect on the economy.
He stated, “Without reform of these rules, hundreds of billions of dollars in debt could go into default, triggering massive foreclosures, significant decreases in property values and a severe constriction of capital available for U.S. consumers and businesses.
“These reforms would help save communities all across America from the drag of a wave of commercial real estate foreclosures, help to restart the credit markets, and free up capital to create jobs and economic opportunities for families in every region of the country.”
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