www.marejournal.com
Real Estate Journal — Spring Preview — April 24 - May 14, 2015 — 27A
M id A tlantic
CMBS L oans
By David Goldfisher, The Henley Group, Inc. Lucky Seven – Must knows for borrowers refinancing CMBS loans
B
thing”, your window of oppor- tunity may close without you even knowing it. 3. You will not invite your Servicer to play 18 holes of golf so that you may gain his trust; Borrower credibil- ity and transparency must be pre-established. Trust is the pre-requisite for getting an audience with the Servicer. 4. Servicer negotiations need to be tactical, succinct and targeted to a financial outcome that the Servicer can support as the highest “Net Present Value” to the bondholders. 5. If you don’t pay-off your
orrowers and Lenders are beginning to deal with some of the fall-
1. When a commercial real estate loan is securitized, your loan has been sold to thousands of nameless bondholders who are more interested in protect- ing their investment than in your real estate. . 2. Communicating and ne- gotiating with the Servicer is NOTHING like dealing with your banker or conventional Lender. You will not discuss various proposals or options over lunch with your Servicer; you will likely speak to your Servicer over the telephone a few times and for a few min- utes. If you say the “wrong
loan on the maturity date, ex- pect that unless you’ve negoti- ated an extension in advance, you will accrue default interest and late fees. 6. At refinancing, some Bor- rowers will need to “right-size” their loans by providing ad- ditional equity as properties will be reappraised at values very different than they were 10 years ago 7. Demand for bridge and mezzanine loans is likely to rise as a result of Borrowers not being able to take-out their existing indebtedness and provide the new Lender with
appropriate reserves. Servicer negotiations are exhausting, challenging and often fraught with twists and turns. Objectivity and perse- verance are tantamount to achieving your goals. Having a highly skilled CMBS insider and negotiator on your team can help level the playing field and get you one step closer to successfully refinancing your property. The Henley Group, Inc. is the “go-to” CMBS Advisory firm for Borrowers who are refinancing CMBS loans. – Special Servicer Recommended since 2009. n
out from the agg r e s s i v e underwriting of the 10-year CMBS loans securitized in 2005, 2006 and 2007. Ap- proximately $350 billion
David Goldfisher
of CMBS loans are maturing from 2015 – 2017. Even if new CMBS issuance increases from the $105 billion securitized in 2014 to the projected securi- tized level of $120 billion an- nually for years 2015 – 2017, there may likely be a $200 +billion refinancing shortfall. Borrowers withmaturing loans need to know: A: There are many market factors we can’t control, and while we’d always prefer to buy in a risingmarket, we do every- thing we can to put ourselves in position for success regard- less of external factors. We spend a substantial amount of time in evaluation and due dili- gence – including considering trends, demographics, existing market competitors, and po- tential development sites and opportunities. This research, prior to entering a market, coupled with a solid value-add strategy puts us in very good position to succeed regardless of the broader market. Q: What specific exper- tise/strengths did you draw on to maximize potential and return on investment? A: First is our ability to identify the specific value- add strategies. I don’t feel all these strategies were self- evident. You need experience and knowledge to be able to recognize areas where your improvement efforts will result in an acceptable return-on-in- vestment. Second is our ability to execute these strategies in a cost-efficient manner. These are complex renovations, and failing to have the expertise to execute can be costly. Elie Rieder is the founder and CEO of Castle Lanterra Properties. Castle Lanterra Properties specializes in identifying multi-family investment opportunities. n continued from page 16A Q&AonMulti-family. . . ByElieRieder, Castle LanterraProperties
CMBS Loan Southeast $4,000,000 Mixed-Use Modification and Multi-Year Extension
CMBS Loan Mid-Atlantic $14,000,000 Anchored Retail Modification, Lock Box Relief CMBS Loan Mid-Atlantic $47,000,000 Office Modified lease terms for Major Tenant Renewal, Escrow Release
CMBS Loan Northeast $3,100,000
Industrial Discounted Pay-off
O: 508-318-6520 M: 617-320-0284
David Goldfisher The Henley Group, Inc.
david@thehenleygroup.com www.thehenleygroup.com
Workout Advisory for CMBS Loans
Made with FlippingBook - Online catalogs