Rush Bradley is an investment/REO services associate at Lavista Associates, a full-service commercial and industrial real estate firm. He also serves as a principal with Asset Advisory Group, a consulting and acquisition company focusing on solutions for community banks. Rush was actually on vacation trying to take a break from his busy schedule when he chatted with us for this week’s Four on Friday. What a standup guy! Rush, thanks for taking time out of your vacation to discuss distressed assets. (Recent vacation picture below of Rush and his daughter, Grace, at Devil's Courthouse off Whiteside Mountain in N.C.)
HS: As a principal with Asset Advisory Group, you acquired over $10 million in distressed assets from banks in 2010. What are you seeing in 2011 and when do you expect to see the banks bringing distressed assets to the market instead of keeping them on the books?
RB: In early 2010, we were seeing a huge gap between what investors were willing to pay for distressed assets and the banks asking price. Now as we are beginning the second quarter of 2011, we are seeing that gap close and banks are beginning to dispose of these assets. I think we will see the volume of these transactions continuing to grow in 2011 and into 2012.
HS: Your background is in financial consulting. How are you using this background in your current position at Lavista Associates?
RB: In all consulting you need to ask the right questions and understand your client’s needs. However, my financial background has given me the analytical capabilities to look at an asset from the financial perspective and have a deeper understanding of what the investor is looking for. I also understand both sides of a transaction, which ultimately helps my clients.
HS: At Lavista Associates, what can you do to help banks move distressed properties?
RB: First, it is imperative we help the banks understand the current commercial real estate market. Banks need to know the prices where deals are trading. Many times the banks ultimately decide it does not make sense for them to sell and we need to be a good resource during this analysis.
HS: What do you think about your alma mater’s new basketball coach? (Rush graduated from Georgia Tech)
RB: Very surprising! Tech’s team was in a position where we definitely needed some new energy. Brian Gregory has proven his ability to win with the Dayton Flyers. Now we just need to see if he can make the Yellow Jackets take flight!