In addition to auction houses, billions of dollars have been raised by private equity groups, hedge funds and REIT's to assist banks in disposing of Other Real Estate Owned (OREO) assets. These groups, while legitimate options for banks trying to dispose of assets, frequently require such significant discounts from current loan values to purchase assets that the price necessary to make the sale is unpalatable to the banker. Disposing of distressed assets is not a banker's most significant challenge. The challenge for a banker in today's market is finding a buyer for the bank's assets at a price that makes sense.
ROI Commercial Property Brokerage provides traditional marketing and real estate advisory services for banks wishing to market their Distressed Assets and Other Real Estate Owned (OREO), such as:
- Broker Price Opinions (BPO's)
- Property and Asset Management
- Sales & Marketing
Innovative solutions, however, are needed to bridge the gap between the bid price and the asking price for troubled assets. These solutions can include new deal structuring, including joint ventures between banks and real estate investors, refinancing with new equity and loan guarantors, and other creative alternatives. While the pool of potential investors is much smaller, local operators or investors can also be tapped. Local investors frequently require lower risk premiums, as their knowledge of the area markets can allow for a greater comfort level when purchasing and valuing an asset.
Along with years of experience in the market with Fee Simple real estate and Tenant in Common (TIC) commercial real estate properties, ROI Commercial Property Brokerage also offers services above and beyond traditional real estate brokerage. With experience in work-out and commercial real estate banking through either staff or our extended network, we understand the challenges of lending in the current highly scrutinized environment. We provide a customized solution to your non-performing commercial real estate assets. Our goal is to maximize returns on your assets in a cost effective and efficient manner.
Some of the additional services we are capable of providing on distressed assets are:
- Outsourced Work-Out Department - for one loan or a package of loans, we can relieve pressure from your current staff and handle the supervision of the property.
- Investigative Accounting Review - for development projects, as well as income generating assets. Understand where the cash is going to preserve the value of your asset.
- Risk and Viability Studies
- Due Diligence Analysis
For more information on how we might be able to assist your banking organization, please contact us here or call our offices at 813.514.1070