Major developments in commercial real estates actually occurred in July and chief of that is the collaboration of New York bond trader Cantor Fitzgerald with leading Los Angeles property fund manager CIM Group, a collusion that experts said would generate up to $5 billion of mortgage originations.

Surprisingly though, this major shakeup and other key movements in the industry were being eclipsed by the nation’s continued fixation on the sluggish economic recovery, which further attracted sustained attention when the gross domestic product registered a paltry 2.4 percent increase in the second quarter of 2010.

Analysts said that the dismal GDP crawl has so far been the lowest since the third quarter last year, fueling further pessimism in the overall market outlook and undeservingly blighting investors’ sights on encouraging real estate news those otherwise offer promises of bursting opportunities.

All the gloomy perceptions of the economy in general, with further talks of probable double-dip recession, almost completely shrouded the biggest commercial mortgage default that has hit the commercial real estate industry so far.

Pershing Square Hedge Fund and Winthrop Realty Trust acquired a total of $300 million mezzanine loans in purchasing the New York residential landmark compound of Stuyvesant Town and Peter Cooper Village, shedding only $45 million or roughly 15 cents on the dollar.

The partnership then instantly sued for foreclosure proceeding on the apartment complex in order to seize immediate control of the prized property.

Then another industry development in New Jersey this time, where Meadowlands Xanadu developers Colony Capital and Dune Real Estate Partners accused their lender of blocking fresh loans to complete their construction activities and instead arm-twisted them into handing over the $2 billion worth of entertainment and retail project.

Part of the project is the new stadium that will house games of both the New York Giants and the New York Jets, with the possibility that the new facility would eventually host the 2014 Super Bowl, yet the prominence seem to have eluded investors’ keen attention just because the economy offers far more pressing concerns.

Analysts said that not only that the Federal Reserve, the Treasury Department, the monthly employment rates, the Fannie Mae and Freddie Mac restructuring talks and the Wall Streets reforms have been hogging the headlines lately but these concerns also blindsided many investors into disregarding any opportunities that the property industry could offer.

Amidst the ongoing distractions and with the eminent absence of traditional financial institutions in real estate financing schemes, the entry of opportunity investors seemed inevitable in which hedge funds and private equity funds were only too enthusiastic to exploit and control properties laced with so much opportunities.

Such were the cases when Pershing and Winthrop started muscling their way into grabbing the command of Stuyvesant and Peter Cooper apartment compound, with similar initiatives seen from the likes of Five Mile Capital Partners, Normandy Real Estate Partners, Lubert-Adler Real Estate and LEM Mezzanine, who all employed similar tactics in gaining control of distressed properties.

However, the strategy is not always successful and though investors flushed with cash normally gravitate into utilizing the risky option, there were instances that banks would opt to put down their feet on selling notes and offer instead extension for problematic loans, looking after, of course, for their own business interests.

In the end, the commercial real estate sector is generally upbeat and recovery has been encouraging at best but the prospect of the industry attracting more investors’ attention is quite a challenge at this time when investors are up on their toes and needlessly monitoring the country’s macroeconomic policies.