The workout quarterback for complex CRE debt.
You know property, the lender knows loan. We know both. The workout lies in the space between.
We specialize in smoothing out where borrower pain meets lender risk. We advise borrowers, sponsors, and institutional investors through high-stakes CMBS, syndicated, private-debt, and bank-portfolio workouts.
Distressed Advisory
For workouts over $25MM, up to capital stacks of $1B+. Senior-led engagement from diagnostic through close.
Connect for a preliminary callPre-Workout Diagnostic
Small-balance triage, two-to-eight week project, deep-dive on the loan history for loan-workout guidance.
Explore your options with usMake the negotiation about the asset, not the loan.
We negotiate the asset, not just the loan.
A loan with an in-place debt yield of 4% compared to new loan rates of 6% in an 8% cap rate world is representative of the typical distressed loan. Add in the maintenance deferred due to historical tight cash flow and pretty soon you're dealing with more of a “cash-in” than a “refinance.”
Most borrowers walk into negotiations defensive, guessing what the lender wants. That’s where our reframe enters the picture: we pull the sponsor and lender perspective into the same conversation for unique and effective resolutions.
A workout is a three-seat problem. Property. Structure. Counterparty.
We've sat in every role. Winning workouts go deep on the asset, not deep on the loan. We handle the full arc of each: pre-default posture, servicing engagement, valuation defense, capital coordination, documentation, and closing.
We game out each loan workout before we take it on. We then present our conclusions so you can make an informed decision.
Inside the mind of each side in a distressed workout.
Reading the room is half the job. Every workout has two sets of pressures, and the outcome sits somewhere between them.
- Under intense pressure and decision fatigue.
- Has typically burned through most options and available cash
- Often is, and likely always was, liquidity-challenged
- Doesn't truly understand implications of the loan terms and often finds them commercially unreasonable.
- Serious case of analysis paralysis, offers lender too many options and loses their confidence.
- Wants lender to mark to market but subordinate equity in-place.
- Wants lender to offer a fresh monetary commitment without any concessions on loan principal balance.
- Willing to engage when the borrower has honored the documents.
- Seeks transparency to the point of borrower jeopardy.
- Will only concede in exchange for a concrete borrower give.
- Wants borrower to “do the right thing” and float the loan.
- Anchors on appraisal theory instead of current market reality.
Typical Borrower Questions
Retain control of the property.
"How do I keep the asset under management, while remaining capital efficient to justify the investor capital call?"
Protection against personal recourse.
"If a deal cant be reached, do I face exposure beyond my equity and potential tax consequences?"
Managing the interim period.
"While the lender controls the cash and decisions are being made, how do we manage tenants, vendors, and the asset's long term health?"
Our expertise runs the gamut of asset types and workouts.
The earlier we're involved, the higher the chance of favorable outcomes.
The best time to engage a restructuring advisor is long before time runs out, not the week after transfer to special servicing.