Lender
Strategic Planning
Research
Financial Advisory
Real Estate Development
Economic Development
Transaction Due Diligence
Valuation & Appraisal
Asset Management
Distressed Asset
Legal Support

Strategic Advisory Group helps creditors and investors understand the real estate asset and maximize returns on non-performing commercial real estate assets. The SAG approach uses real estate expertise in addition to financial expertise and engages client interaction to explore creative workout solutions that positions the asset accordingly and works to maximize yield. We work with property owners, operating companies, lenders, investors, attorneys, and other stakeholders to design and implement workout or disposition solutions tailored to the need.

Distressed asset services might typically include: portfolio and loan review; due diligence services, including appraisal and valuation; workout and disposition strategies; capital structuring and sourcing; asset management and receivership; project management and completion services; transaction management; legal counsel and support.


Please view sample projects below.



Citibank
New York, NY

Bank Commercial Lending Criteria Restructuring

Components: Commercial Loan Lending Criteria Modification

SAG team members helped modify Citibank's commercial real estate lending criteria following the failure of commercial real estate loans in the early 1990s. The project began with a survey of loan officers to understand the primary variables that went into commercial real estate lending decisions. The next step was to gather project and market data that was available at the time of the loan commitment on 500 sample loans. This data was fed into a multivariable regression model to understand which variables were most correlated with loan success or failure. Variables included relationship data, past borrower performance, project data (occupancy, coverage, etc.), and market data (occupancy, growth rate trends, known new supply, etc.).

The study determined that there were ten key project and market variables that were known at the time of lending that were reliable predictors of success. However, the survey of loan officers indicated that relationship and past performance were their key criteria in making loan decisions. The result was a modification of the lending practices that lowered commercial real estate lending delinquency.



Secured Capital
Glendale, CA

Bank Loan Bulk Sale

Components: Multi-Asset Loan Portfolio

SAG professionals conducted loan file due diligence procedures on a large bank commercial and residential loan portfolio as part of the bank's liquidation. The loans, bundled in commercial mortgage-backed securities, required various levels of due diligence procedures and analytics.