Recent Mandates

Commercial & Residential Loan Valuation

• We assisted a private equity investment house in their efforts to acquire a $250 million asset bank based in the Southwest.   Our mandate was to thoroughly review and fairly value approximately 100 loans, both performing and non-performing, with an aggregate principal balance of approximately $150 million.  Analytical templates were developed for the collection of data from each loan file, and those individual files rolled into a master valuation page.  Site visits and deeper market research was done for properties collateralizing the larger balance loans.  The master loan valuation analysis was then rolled up into an overall Bank valuation.  Overall bank value was then used to determine the required capital investment as well as investor returns. The assets included permanent and construction loans for commercial properties (Office, Industrial and Retail) as well as residential land development and home construction loans.
• REC was engaged to review the non-performing loan portfolio of a $2 billion asset banking institution on the West Coast.  The investor objective was to for an operating subsidiary of the bank, and to populate such subsidiary with bank loans and equity capital.  Our mandate was to model the timing and magnitude of the subsidiary cash flow and repayment, as well as its ability to meet investors expected returns.
• We assisted a significant New York based real estate investor with its efforts to acquire a $3.2 billion asset bank located in the Far West.
• For the same investor REC valued the non-performing, sub-standard and watch-list portfolio of a $3 billion+ asset regional bank located in the Southeast.
• REC has consulted with numerous other banking institutions in all regions of the U.S. regarding asset valuation, defaulted loan resolution, asset sales and capital raising efforts.

Single Asset Acquisitions

• We assisted a private foreign investor in acquiring a 450,000 square foot Class "A" office building in the Southwest.  Since the anchor tenant was departing in less than a year the investor engaged us to study the sub-market and competitive buildings, and to establish a marketing plan for gaining necessary market share.  We then developed a detailed excel cash flow model that incorporated the associated costs with re-leasing, as well as terminal values and overall rates of return.
• The client was pursuing the acquisition of a partially sold 300-unit high-rise condominium project located in a major California city from a mezzanine lender who had foreclosed on the developer.  Our mandate was to analyze the downtown residential market and develop a reasonable set of assumptions regarding the investor’s ability to first rent unsold units and then sell those same units in the future.  Once the assumptions were generated and supported they were incorporated into a financial model that allowed the investor to modify each assumption and immediately see the result on cash flow and NPV.

Investment Company Corporate Strategy

REC was hired by an institutional real estate company to evaluate its portfolio of single tenant buildings located throughout the U.S. and to make recommendations for ongoing strategy. After 90 days of review we presented our valuation of the company along with our proposed "growth strategy" for the company going forward.  The proposal was supported by a unique and proprietary financial model for valuing single tenant buildings with short to mid-term lease expirations.  Three years later that same model was used by a major Wall Street firm in valuing the firm to take it public.

Bank Portfolio Review

A $3 billion Southeast bank engaged REC to develop a resolution strategy for three non-performing loans collateralized by commercial properties and land.  Each loan had separate borrowers with separate property and market issues to contend with.  In each case we authored detailed business plans for resolving each loan in a manner that maximized the bank's recovery.  The individual business plans included property and borrower background, sub-market updates and projections, as well as detailing specific activities to be implemented for the collateral.

Portfolio Loan Restructure

On behalf of a regional operator our team analyzed a portfolio of commercial properties, and their respective markets, to prepare for the restructuring of CMBS debt encumbering all properties.  Once the property analysis was complete it was submitted to the special servicer and used as a basis of negotiation.