Wednesday, February 24, 2010

Distressed Owner Recapitalization Program

Commercial Mortgage Advisory Partners has several financing programs for distressed commercial property owners. One is the Distressed Owner Recapitalization (DOR) Program. For owners unable to refinance loans, CMA Partners can tie together our expert capital advisory services with access to hundreds of active private funding sources ready, willing, and able to recapitalize troubled commercial real estate assets across the capital stack. While much of the commentary in the commercial real estate industry today focuses on investor opportunities to acquire distressed debt, the Distressed Owner Recapitalization (DOR) Program by CMA Partners focuses on helping troubled owners and developers. The Capital Markets and Structured Finance groups at CMA Partners are offering solutions every day to the ongoing liquidity crisis by providing access to more active funding sources across the capital stack. When better access to active funding sources is combined with expert advisory services, the DOR Program will positively impact owner recapitalization.

For experienced owners of existing income-producing properties looking to refinance, the program by CMA Partners offers access to investors that will purchase the note from the bank at a discount. Owners will continue to make new payments to the new investor and participate in the up side when values increase.

In those instances where the bank won’t discount the note for the income-producing property, CMA Partners has access to investors that will recapitalize it. They will provide the equity and/or mezzanine financing required to secure new senior debt of 50-65% LTV. Owners will participate in the upside once the market improves.

For experienced developers of partially completed projects that need capital to finish and operate the property, CMA Partners has access to investors that will purchase the note from the bank at a discount, allowing the developer to complete the project and operate the property. The developer will continue to make the original payments to the new investor and participate in the upside when property values increase.

For more information or to speak with a consultant, please call - 866-496-9897

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