Park Bridge has extensive loan workout experience that spans several real estate cycles, includes all property types and covers all positions in the capital stack. Our real estate and structured finance expertise enables us accurately and efficiently to guide borrowers through the process. We maintain high-level relationships with many banks and virtually every CMBS master and special servicer. This access assures our clients prompt attention as well as real-time insight into current practices and requirements of loan modifications.
Our extensive knowledge of commercial banks, investments banks and insurance companies, as well as our securitization experience, provide us invaluable insight in to the motivations of financial institutions and CMBS trusts. This critical advantage enables us to negotiate the best modification possible for our clients.
Our track record speaks for itself. We have negotiated and closed dozens of win-win loan modifications and DPOs totaling approximately $800,000,000 with an average reduction of debt of approximately 34%, and as high as 78%.
Park Bridge begins all assignments with a full underwriting and analysis of the real estate, the submarket and the debt structure. The typical scope of work includes:
- review property financial statements and develop property-level cash flows
- review rent roll and prepare tenant expiration analysis
- perform analysis of borrower, sponsors and guarantors
- review third-party professional reports
- conduct site inspections
- review legal documentation
- conduct review of the local market, including a survey of rents, occupancy levels and trends
- analyze the entire capital stack and all related loan documents, review intercreditor and/or participation agreements, as applicable
- for CMBS loans, review pooling and servicing agreements and compile a full understanding of the bond structure, including aggregate losses, control rights, motivations of the special servicer
- assess various strategies and work with client to implement the optimal resolution
- prepare written correspondence and negotiate directly with master and special servicers
- activate a transfer of the loan to the special servicer
- manage negotiation of terms and closing directly with the lender or servicer