Consulting – NPL/REO Portfolio

CASE STUDY

Challenges

Mixed portfolio with 17 assets located in 10 different states; 7 assets were non-performing loans, all with differing foreclosure laws and in different stages of the foreclosure process.

4 different asset classes: industrial, retail, office, multifamily; 10 different asset subclasses: gas station/c-store, broken condo, mixed use retail storefront residential, auto repair, manufacturing, suburban office, office condos, fast food, warehouse and contractor yard.

Contamination, clouds on title, ongoing litigation and tertiary markets considered.

Solution

The client required an in-depth review, valuation and analysis from a 3rd party in order to obtain a cash out refinance on their portfolio of various assets. Rhenium was the ideal solution, as appraisers and traditional brokerage shops do not typically value both fee simple and the market value of non-performing loans.
We reviewed all of the pertinent data, including appraisals, environmental reports, loan and legal documents. We also ran our own analysis of value of the fee simple assets, as well as both the fee and note market value for the non-performing loans.
Findings were presented to the client, who then utilized them to obtain a cash out refinance.

Deal Overview

Total Assets 17
Total Notes 7
Note Face Value $7,453,917
Total Fee Simple CRE 10
Retail Assets 10
Industrial Assets 4
Multifamily Assets 2
Office Assets 1
Portfolio Value $18,000,000

Institutional Execution Middle Market Focus