Achievements

Asset Management & Disposition

The Opportunity

Served as court-appointed receiver on a 798-unit apartment property in west Houston.

Role

  • The Lender posted the property for foreclosure and was attemptingĀ  to workout the situation with the Borrower
  • Hired as an asset manager to serve as the intermediary between the Lender and Borrower, and participated in the workout negotiation. Once an agreement was reached, a team member was appointed as Receiver by the court
  • Asset managed the property for seven months, then instituted a four-month marketing process (from launch to close). As asset manager, our goal was to assess the health of the property and address the issues that could enhance its value.
  • Assessed deferred maintenance and life safety issues. Identified and ranked a number of issues; solicited bids and oversaw the repair of several areas of the property (e.g., parking garage, fencing, access gate / card reader, pool). Focused on life safety and resident retention.
  • Provided marketing and operational review, along with recommendations to maximize collateral value. This included expanding the marketing channels to promote the property to potential tenants; implementing a new process for negotiating tenant renewals and new leases; adding accountability to the funding request process; modifying reporting; and enhancing the level of communication with the on-site property management company
  • Gauged the effectiveness of current on-site staff and management company. Revised a number of existing management company's processes.
  • Reviewed and evaluated all third-party vendor contracts and outstanding payables. Solicited bids from new vendors to replace vendors that were not doing an adequate job or were too expensive. Re-negotiated existing vendor agreements and replaced vendors.
  • Negotiated settlements and discounted payoffs with numerous vendors. Property had numerous liens and lawsuits. Focused on eliminating as many as possible prior to hiring counsel
  • Ongoing oversight of property management.

Results

  • Asset management assignment resulted in an 11% increase in asset value based on sales price.