REAL ESTATE

The continually changing financial and regulatory environment creates challenges for real estate owners, developers, operators, lenders and investors. ABTV’s team of experienced financial and operating professionals offers pragmatic, effective, and holistic solutions to difficult problems. We have experience in real estate workouts dating back to the late 1980’s and have been through two major real estate downturns. We can quickly evaluate situations from the standpoint of owner, lender, manager, and prospective purchaser.


 

We have expertise with properties of all types and sizes, including:

Retail

Office

Industrial

Hospitality

Healthcare

Special Purpose

Residential Construction Projects

Condominiums and Apartments

Time Shares

Land

ABTV has seasoned professionals that can help real estate companies address a crisis or unusual challenge. Assistance includes advisory services or assuming a direct senior-level executive role, whether demanded by a lender, necessitated by an ownership dispute, or required for a restructuring or bankruptcy reorganization process. ABTV can fill the roles of CEO, CFO, CRO (Chief Restructuring Officer), or other senior positions, to maximize the value of assets and guide a troubled situation to a swift resolution. Services include:

  • Formulating, negotiating, and implementing a strategic restructuring plan
  • Drafting an operating budget and reporting on actual vs. budgeted performance
  • Making disbursements in accordance with an operating plan and budget
  • Communicating regularly with all capital providers, as well as other constituents, including vendors and employees, to maintain credibility throughout the process
  • Meeting with counsel and other advisors to formulate and implement strategies for any pending or threatened litigation
  • Working with the property management team to oversee building operations and capital projects
  • Implementing a strategic sale or other disposition strategy, if appropriate

We offer an objective, professional, and pragmatic resource to provide high-value solutions in a difficult environment.

Example:

As President of the bankrupt One Madison Park Condominium project, a 50-story, 69-unit luxury tower located in Manhattan, managed all aspects of the debtors’ confirmed bankruptcy cases including:

  • Negotiating the plan of reorganization
  • Making disbursements in compliance with DIP budgets
  • Communicating with the debtors’ lenders, other creditors, and outside professionals
  • Settling or prosecuting/defending litigation matters
  • Preparing and filing monthly operating reports
  • Overseeing building operations

Result: Secured creditors were paid in full and a “gift” distribution was made to unsecured creditors

PORTFOLIO MANAGEMENT

ABTV has the expertise to manage large portfolios of troubled loans secured by real estate. For lenders who do not have sufficient internal “work-out” resources to handle large scale defaults, ABTV can be retained on a contract basis to act as the restructuring expert. Services include:

  • Site visits and asset evaluation
  • Competitive and market analysis
  • Negotiations with borrowers for restructuring or to obtain a consensual deed-in-lieu of foreclosure
  • Disposition analysis
  • Meetings with counsel and other advisors to formulate and implement the most efficient and effective strategy
Example:

Acted as the Portfolio Manager for:

  • GMAC ResCap on an $875 million loan portfolio consisting of 15 relationships and 65 residential construction and mezzanine loans in the U.S. and Mexico
  • GMAC Commercial Finance on two Resort Finance (time-share related) loans totaling $675 million

Result: The loan portfolios were successfully worked-out through restructurings, pay-offs, foreclosures, and sales over a 21-month period.

LOAN WORKOUT ADVISOR

ABTV provides objective and effective consulting services to both owners and lenders/creditors of complex real estate transactions.

  • For owners with assets that have quickly-approaching loan maturity dates, or may be over-leveraged, we provide advisory and restructuring services to negotiate modifications with lenders, recapitalize, refinance or sell troubled properties
  • For lenders with loans that face classification or default, we offer pragmatic solutions including serving as CRO or Receiver, to obtain the maximum recovery possible
Example:

As the loan workout advisor to a private lender on a $40 million land loan in CA, with approval for 66 high-end fractional ownership residences:

  • Negotiated for a consensual bankruptcy filing that allowed for the orderly sale of property
  • Negotiated forbearance agreements prior to filing, to allow for protective advances and interim construction financing that vested building permits and preserved the value of the property for the lender

Result: Bankruptcy Plan was approved by the court

RECEIVERSHIP

Sometimes the best solution is utilizing a court-appointed fiduciary to manage a real estate project during a foreclosure process. As a Receiver, ABTV operates and/or manages the property to preserve its value for the benefit of the owners and/or lenders. The Receiver performs services that can also include leasing and related activities such as:

  • Tenant build-outs
  • Capital improvements
  • Financial reporting and other updates for the court, as required
  • Compliance with laws associated with permitting, disposition, and adherence to building code and environmental laws
  • Maintenance of adequate insurance and security
Example:

As the court-appointed Receiver for a $125 million ethanol plant project in NC during the pendency of 7-month foreclosure process:

  • Managed and maintained the plant in a “cold-idle” state
  • Budgeted and managed cash flow with weekly reporting to the lender group
  • Managed issues related to employees, waste removal, permits, insurance and security

Result: Plant was properly maintained and marketed until a successful foreclosure sale to a strategic buyer.

PROPERTY TRANSACTIONS & CAPITAL

For real estate owners and investors, agility and adaptability to changing markets and conditions are crucial to growth and continued success. A real estate investment portfolio requires ongoing evaluation to ensure strategic objectives are being met. Some properties may be ready for disposition or transformation, while new properties may be acquired to enhance the portfolio. New or restructured capital may be necessary as well. ABTV’s experienced real estate team supports you with deep knowledge and insight in such areas as:

  • Portfolio optimization strategy
  • Proformas and financial modeling
  • Identification and evaluation of transaction structuring alternatives
  • Market analysis and valuation
  • Debt and/or equity capital sourcing, introductions and information package
  • Interest rate hedging associated with debt financing
  • Asset dispositions, including marketing and broker coordination
  • Restructurings and transformation
  • Negotiations, legal documents and closing
Example:

As CFO of a start-up REIT associated with a Fortune 500 company:

  • Coordinated the due diligence and secured financing for $200 million in acquisitions related to 50 auto dealership and retail properties
  • Arranged and administered a $150 million mortgage facility, along with subordinated debt

Result: The mortgage commitment was more than twice the size of any previously made by the lender. While an IPO was initially pursued, a more favorable sale of the start-up business to an existing public REIT was successfully negotiated and closed.

DEVELOPMENT & CONSTRUCTION

Whether you are planning a single building or a complex urban mixed-use project, ABTV’s seasoned professionals have the expertise to help you navigate the development and construction process. We offer project management services addressing such areas as:

  • Financial modeling and project structuring
  • Land acquisition
  • Project design and rezoning activities
  • Construction cost management
  • Construction and permanent financing arrangements
  • Marketing and/or leasing strategy
  • Negotiations, legal documents and closing
Example:

Managed the joint venture projects for a Charlotte-based real estate firm, including pre-development activities of the company’s first mixed-use endeavor. Activities included a complex land purchase for tax and financing purposes, financial projections and analyses, land use and project design, rezoning and communication with neighboring businesses and homeowners, resolution of significant wetlands and transportation issues with government officials, and leasing strategy. The 145-acre project encompassed over 400 single family homes, 300,000 SF of retail and office space, and involved multiple development partners.

Result: Rezoning was achieved and the project was successfully completed as planned.

OWNERS, OCCUPANTS & TENANTS

Real estate, whether owned or leased, typically entails a critical and often significant expenditure for any business operation. Given our extensive knowledge and hands-on experience in the real estate sector, ABTV professionals are adept at helping owners, occupants and tenants address their real estate needs, including the following:

  • Evaluation of lease versus buy options
  • Lease negotiations and tenant improvements
  • Project management role during construction
  • Government incentives for new investment
  • Financing arrangements and structuring
  • Exit strategies when circumstances change
Example:

Served as project manager related to the construction of an owner/occupied office building for three professional groups. In addition to the coordination of construction activities between the contractor and business owners, project financing was arranged.

Result: The building was successfully completed and financed to the satisfaction of all parties.

CORPORATE STRATEGY & ONGOING ADMINISTRATION

Once your real estate acquisition is closed or a newly constructed building becomes ready for occupancy, management of the property’s ongoing operations begins. Depending on your corporate strategy, these activities may remain in-house, while some or all may be outsourced. Regardless, the overall goal is to operate efficiently and effectively, as well as to cultivate and maintain strong relationships with property stakeholders. At ABTV, our real estate specialists have the direct experience to assist you with the following:

  • Interim management roles
  • Development and implementation of corporate strategy
  • Evaluation of organizational structure and its effectiveness
  • Lease negotiations and administration
  • Property management concerns
  • Accounting operations and financial reporting
  • Debt compliance and lender reporting
  • Investor relations and reporting
  • Performance enhancement and operational efficiencies
  • Optimal staffing and human resources
  • Technology considerations
Example:

In the CFO role for a private developer and manager of over 1.5 million SF in Class A office space, directed all corporate finance and related activities. In addition to management of investor and lender relationships, responsibilities included business planning, accounting and reporting, IT, human resources, insurance, tax and legal. Advice to the company president was also provided on new business investment opportunities, internal restructurings and other strategic initiatives.

Result: Enhanced investor/lender communications and improved performance of portfolio properties were achieved in collaboration with leasing and property management teams.