According to the FDIC, Real Capital Analytics and banking industry experts - troubled commercial real estate properties in default, foreclosure or bankruptcy now exceed $107 billion as of June 30th 2012 in North America. And lenders are facing accelerating loan delinquency’s, increasing loan modifications and deed-in-lieu of foreclosure. It is projected that ORE portfolios are going to swell over the next twelve to thirty-six months.

Are you taking on ORE properties faster than there are willing, financially capable buyers available to acquire your distressed loans and assets? Are you concerned that your ORE properties may deteriorate in value as they potentially sit vacant, languishing without owners? Do you need a competent asset manager or owners representative – who thinks and acts like an owner and can develop successful, proactive business plans and strategies and disposition/solutions to oversee and manage these assets? A reliable firm that can provide timely, comprehensive, detailed accounting and reporting services tailored to your companies standards and requirements, someone to provide construction management and disposition services while your company waits for the financial markets and economy to recover and real, quantifiable acquisition demand and financing capital to return to the market?

Special Asset Consulting Services

Overview:

Powers Realty, Development, and Consulting LLC offers 32 years of collective expertise to real estate lenders, loan servicers, GSEs, and private equity investors in need of immediate assistance with their special and distressed assets. Powers provides this consulting service for existing income-producing/non-performing assets, development assets, and land. Furthermore, this service is provided for all real estate product types - office, retail, multi-family apartments, for-sale residential, industrial, hospitality, and storage.

Powers helps banks, life companies, loan servicers, and investors seeking to optimize the value and performance of their distressed assets by evaluating, pricing, positioning, managing, and disposing of the assets. We offer value creation strategies, solutions and asset management to capital providers facing challenges with their special assets that are in imminent default, in monetary or non-monetary default, or near/reached note maturity. Powers assures clients of results based on a rigorous and disciplined evaluation and execution that maximizes returns and liquidity options.

Special Income-Producing Assets

Powers provides consulting services for income-producing assets that are occupied, or vacant. Since each workout and client’s needs are different, Powers provides a menu of services:

Property Evaluation The "Game Plan" Recapitalization – if required Receivership and Asset Management Disposition Services

Property Evaluation

The first stage of a workout is to understand the asset and/or portfolio. Property evaluation typically entails a review of leases and other income, expenses, lien holders, capital stack, vendor/contractor payables, capital reserve and working capital accounts, condominium association status, real estate taxes and other municipal fees, tenant and common area deferred maintenance assessment, and property/engineering inspection to determine code compliance. There is also the need for a current appraisal so current value can be determined.

The "Game Plan"

The second step is devising the workout “Game Plan”. The three critical components of this step are a market analysis, financial analysis, and ultimately deciding what to do with the asset. A thorough review of the underwriting is critical to the successful resolution of any distressed asset. Market fundamentals have changed so significantly that many assumptions underlying today’s real estate models are no longer valid. Powers is skilled at deciphering – and if necessary creating – complex financial (cash flow) and debt service models. In formulating the asset “game plan”, Powers will examine debtor cooperation, loan modification scenarios, whether to take receivership of asset or leave borrower in-place, and whether to perhaps pursue a note sale or auction.

Recapitalization

In some instances, a recapitalization of the asset is the best strategy. Finding capital in today’s economy is very challenging, however Powers has a reputation for crafting new capitalization strategies and placing capital.

Receivership and Asset Management

Powers offers complete receivership and asset management services. Powers can initiate and manage the legal proceedings of receivership. Additionally we can manage and preserve the asset, if it becomes ORE. Managing and preserving the assets includes securing the asset, budgeting and financial reporting, quarterly and annual valuations, leasing, positioning/repositioning, property manager oversight, property inspection, construction and renovation management, and lease reviews and audits.

Disposition Services

In this capacity Powers can utilize its resources to arrange the sale of a distressed asset with an institutional, high net worth or developer/investors who are pursing these types of acquisition opportunities. Powers can either employ its extensive database of investors, or pursue an auction sale.

Special Development and Land Assets

Distressed development and land assets are often the most challenging and complex to work-out; however Powers is uniquely positioned since our Principals have also been successful developers. We apply the same rigorous approach that we utilize when we have developed, thus Powers can assures clients of results based on a disciplined execution. Powers offers the same services which it offers for “income-producing assets”, however some services differ due to the lifecycle of the asset

Property Evaluation

In addition to reviewing items listed under “income-producing assets: property evaluation”, development/land assets often have additional evaluation requirements. These requirements generally are reviewing estimates for cost to complete, feasibility, design and engineering specifications and quality, entitlement risk and processing, regulatory compliance, contractor qualification, value engineering, construction management, punch-list items, lease-up management, and homeowner/condominium association.

Game Plan

In addition to having a thorough review of the underwriting, lenders need to know if it’s worth holding on to development and land assets until the market stabilizes or if changes are possible that might improve the viability and performance of a project. Powers will develop a plan and strategy for the asset that‘s in accordance with the lender’s business model.

Recapitalization: see "income-producing assets: recapitalization"

Receivership and Asset Management

Powers has the capability of taking over a job at any stage, including those that are in the midst of construction – depending on the project, we might bring in a JV partner. Powers can manage construction completion, re-brand or reposition the development, and develop and implement a plan for aging contractor payables.

Disposition: see "income-producing assets: disposition services"

Consulting Cost

Powers works with a client to develop a scope of work, which then results in a proposal. Powers can work on a fixed-fee, hourly, hybrid or in some cases a performance-based percentage fee.

Workout Case Study A developer of an historic landmark mill building in Lowell, Massachusetts engaged Powers to…please see www.PowersRealtyandConsulting.com "Contact Us" and request the rest of the story.