CMBS/LENDER RECOVERY SERVICES
Chief Financial Officer
(312) 915-2535 direct
(312) 915-3356 fax
PROPERTY ASSESSMENT AND VALUATION
With its history as an owner combined with knowledge of the capital markets, leasing, and property management, Urban is uniquely positioned to provide an estimate of value on any large retail project. In constructing various valuation scenarios, Urban utilizes many different departments including property management, leasing, redevelopment, tenant coordination and finance to analyze the asset. The process begins with the leasing, tenant coordination and development departments creating a custom merchandise plan for the center. The plan takes into account lease rollovers, market rents, tenant allowances, and includes a depth chart of targeted tenants and possible space reconfigurations. The finance department, including a CPA’s analytical support, uses the merchandise plan as the basis for detailed multi-year Argus projections including projected NOI, capital needs and leasing costs.
The Capital Markets group, including CPAs and CMBS professionals, assess current market cap rates and exit caps, discount rates, cost of capital and various adjustments that the market may require as the basis for forming an opinion of value of the asset both on a current “as is” basis and on a reversionary basis. Special understanding of REMIC rules, including ASER reductions and holding periods as well as leveraged sales structures and emerging modification and joint venture structures are applied to determine additional value points for use by borrowers, special servicers and banks.
For more information, contact Joe McCarthy at 312-915-2535.
PROPERTY MANAGEMENT SOLUTIONS
Urban Retail is a full service organization that provides in-house expertise and an unmatched depth of experience for virtually any management, marketing, leasing, or development issue that may arise. We are seasoned third-party property managers capable of complying quickly with the specific requests and the changing needs of our clients. This means you can expect more with Urban Retail than you might have otherwise thought possible.
Urban can assist owners with developing a plan for use in supporting a Lender workout or modification. Through our experience as property owners we can provide additional assurance to Lenders that the workout strategy will be viable.
Deed in Lieu
Once a Lender takes the property back, it is essential that the property’s best interests are immediately undertaken to secure existing tenancy and target new tenants through an effective merchandising plan. In addition any immediate costs savings, best practices and collateral protection measures need to be undertaken. Often Urban will have provided a plan to the Lender well in advance of such an event and will be able to step in immediately and improve the property on transfer of ownership to the Lender.
URBAN RECEIVERSHIP SOLUTIONS (URS)
Urban Receivership Services (“URS”) was formed to provide owners and special servicers with a highly qualified solution for distressed retail assets. URS brings a strong and experienced receivership team with principal Steve Baer of Rally Capital having experience on more than 70 receiverships and Urban principal Joseph McCarthy having executed fiduciary duties on $2 billion of similar assets. Urban Receivership Services is affiliated with Urban Retail Properties who takes over the day-to-day management of the asset and provides the best solutions to protect the asset and maximize its financial performance.
Once Urban Receivership Services is appointed as a Receiver, it will immediately contract with Urban Retail Properties for the property management. As is the case in a Deed-in-Lieu transition plan, a strategy will most likely have been developed well in advance of the event and the property will stand to benefit immediately.
URS Fact Sheet
For more information contact Joe McCarthy at 312-915-2535 or Craig Delasin at 312-915-3232.
As part of our capabilities to service the industry, Urban is well positioned to assist both borrowers and lenders in executing a problem resolution strategy for assets that would either end up in receivership or foreclosure.
Through our ability to evaluate an effective plan for large retail assets, we can help preserve value for lenders and owners. Urban's understanding of the Lender’s needs and CMBS structure allows us to develop resolution plans that maximize the recovery for all parties. We understand that such scenarios require an infusion of capital today in order to lower lenders’ risks through reserves and to cover the needed capital and leasing costs. In many cases, such infusions are significant and cannot otherwise be supported by the current debt structure and asset valuation.
Urban is able to infuse the needed capital quickly and efficiently and can identify those projects that merit this solution to the benefit of both the owner and the lender.
CMBS News and Articles
For more information and to request a sample of Urban’s standard proposal package, contact Joe McCarthy at 312-915-2535.