Access to the Right Capital
IS A KEY COMPONENT TO GETTING YOUR LOAN SUCCESSFULLY RESTRUCTUREDTo get a CMBS loan restructured successfully, it is just as important to have the right debt & equity ‘partner’! Each Special Servicer has a list of equity providers they prefer to work with. These equity partners understand the CMBS structure and have a proven track record of closing CMBS transactions with the Special Servicer. By bringing these partners into the transaction, your deal has a much higher likelihood of getting approved. Plus we only work with borrower friendly capital providers! Capital providers that allow the owner to remain in control of the asset. We have access to the right capital solution for you!
Examples of How the Right Capital Helps a Restructure:
Paying off a Maturing Loan
Highly Leveraged Bridge Loans
If you find yourself in a situation where the current LTV of your property is between 75% – 90%, and you have a CMBS loan maturing, you may not qualify for an extension. Yet, you may have difficulty finding enough money to pay off the existing loan. We have alliances with Lenders who provide borrower friendly short term bridge loans up to 90% LTV, or alternatively, offer debt and/or equity to bridge the gap between your new lending source and the payoff amount necessary for the existing loan. This is always a better option than getting foreclosed! Don’t falsely assume you qualify for an extension if your LTV is below 90%!
Funding a Discounted Payoff
High Leverage DPO financing
When discounted payoffs (“DPO”) are achieved in 2015, the payoff amount is almost always at an amount which is equal to the market value of the property. This means a borrower will need funding equal to 100% LTV to execute on the DPO. In instances where borrowers do not have access to all funds necessary, we can provide borrowers access to borrower friendly funding sources for 100% of the DPO amount.
Restructures
Equity for Restructures
Equity for AB Structures
All restructures require new “skin in the game” in the form of new equity from the borrower. If the loan is restructured correctly, new equity makes economic sense. And to some degree, the amount of new money the borrower can bring to the ‘table’ at the time of a restructure, the better the terms of the restructure. We have access to money that will allow borrowers to achieve the best results on a restructure.
When Facing Significant Tax Consequences
Creative Note Purchase with Tax Deferral Options
There are creative ‘funding’’ structures for a discounted payoff or full payoff that allow the existing borrower to potentially defer their tax consequences. To accomplish these highly creative tax deferral techniques, we have lined up funding sources that have experience with CMBS structures, an interest in helping owners, and an approved strategy. This strategy works especially well for all Tenant In Common (“TIC” ) structures.