As a commercial real estate property owner the last place you want to find yourself when experiencing a problem with your asset is that situation where you have no options available to negotiate an outcome that is mutually beneficial for yourself and your capital partners.
Troubled assets can manifest themselves as a result of an owner's limited resources (financial and human), catastrophic events, credit crunches, emotional attachment and a host of other influences that can turn a sound investment into a significant liability.
Engaging a professional that can independently and proactively analyze your troubled asset situation, offering solutions and becoming your advocate can mean the difference between keeping your asset, and losing it.
"We recognized the need for a borrower advocate long before the collapse of the commercial real estate market," said Anny Hambly, CEO/President of 1st Service Solutions. Founded in 2005, they were the first firm dedicated to serving as a borrower advocate in loan restructuring and assumptions.
With Senior associates having an average of 25 years experience in CMBS servicing, underwriting and appraisals, its extensive network of contacts is highly beneficial for clients. "Our team has direct experience at major loan servicing and real estate companies including Prudential, Nomura, General Electric and Ernst & Young," explained Hambly. "We also have seasoned associates experienced in special product areas, such as hospitality."
Since its creation, 1st Service Solutions has resolved more than $4 billion in loans for its clients.
Serving as the borrower's advocate, 1st Service Solutions facilitates commercial real estate loan assumptions resulting in a smoother process and faster closings. Their experience includes handling deals that included a high LTV at time of assumption, non performing properties and cross collateralized loans.
"We serve as the quarterback for the entire loan assumption process, which typically is completed within 60 days, markedly better than the industry average," said Hambly. According to a study performed by Fitch in 2005, the average assumption turnaround timeframe was 120 days.
1st Service Solutions custom designs solutions for troubled assets. With an average of 25 years experience in CMBS servicing, they develop strategies and solutions that are tailored to keep the keys to your property in your hands and away from your creditors.
The firm engages in a complex analysis of the property and creates a property-specific recommendation. The process involves:
In addition to restructuring, the firm is a leader in assisting clients with loan workouts. There are many types of options available to clients, including:
"As we worked with clients, we saw a gap in the existing products for what we call "rescue capital," explained Hambly. "To fill this gap, we created an exclusive alliance with The BSC Group to offer equity and debt solutions to clients where there was a need." With this alliance, 1st Service Solutions can now handle the entire workout transaction for clients.
To learn more about 1st Service Solutions, please visit http://1stservicesolutions.com/.