RR Donnelley's seasoned team of real estate underwriters, asset managers and portfolio managers offers high-level, value-added consulting services to asset and portfolio managers as well as loan servicer's who seek assistance with the analysis and recommendations for performing and non-performing commercial real estate loans.
Our expertise includes highly structured floating rate re-development and construction loans as well as special servicing support for conduit and GSE loan servicers.
Analysis and Recommendations are related to:
- Property operations
- Development and construction management
- Financing strategies and modifications in light of existing loan agreements and current property performance
- Business plan modifications
- Credit Risk Modeling Using Proprietary Software and Analytics
- Guarantor & Borrower reviews
Available services include:
- Performance Hurdle Analyses
RR Donnelley's team of senior asset managers and analysts evaluate how a property is performing relative to the original business plan via a complete review of the original underwriting and loan documentation and a comparison to actual performance. Often, this includes an analysis of whether performance hurdles such as property cash flow coverage tests have been met, whether proposed new leases fit the plan and /or require revisions prior to approval, and in the case of loans closed for the purpose of re-positioning or re-developing a property, whether there are adequate funds remaining to cover capital improvements, tenant improvements, anticipated debt service and operating shortfalls.
- CAPEX and TI/LC Holdback Funding Requests
We process, analyze and make recommendations for funding based upon how the request complies with loan agreements, prior draw requests and site inspection reports. RR Donnelley also conducts site inspections to verify work completion and fund availability based upon reviews of draw packages and interviews with borrower and tenant representatives.
In the case of troubled assets, our experienced team can inspect properties for Borrower waste, mismanagement and fraud concerns.
- Earn Out Analysis and Recommendations
RR Donnelley formulates recommendations for release approvals by analyzing borrower requests, reviewing loan agreements and securitization documents, reviewing and analyzing property and borrower financial performances and then summarizing the findings with the appropriate recommendation.
- Lease Reviews
During our lease review and abstraction, our team extracts pertinent data to determine whether a proposed new lease is in compliance with the loan documents. If non-compliant, the RRD team makes specific recommendations to the client regarding proposed changes, impact of proposed lease on cash flows and remaining costs to complete the re-positioning of the property.
- Loan Document Abstraction
RR Donnelley can evaluate and abstract complicated loan documentation, including syndicated debt, to further assist lenders, servicer's and agents in identifying their rights and responsibilities.
- Property Performance Analyses
Especially for sub-performing or non-performing assets, we determine through a combination of market studies, economic base analysis, property management interviews and property operations reviews what factors are contributing to a specific property's inability to meet its business plan.
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