It’s a jungle out there… and we are in the trenches with you. We know that a person’s trust is earned. Its value can never be compromised.
Relationships are for a lifetime. Regardless of the situation, we have a dedicated team of professionals who can take the bumps out of the road before you get there.We are seasoned veterans ready to assist you in today’s challenging marketplace. We’ve been providing unique creative problem solving capabilities to our clients for a quarter of a century. We have developed sophisticated proprietary analytical tools and capabilities that minimize risk and maximize opportunity.
We balance the “risk-reward” equation… in your favor. We provide discerning investors a competitive advantage as they contemplate weighty investment decisions.
As a Sperry Van Ness Advisor, we are part of an international team which comprises over nine hundred professionals in 150 different real property markets. SVN advisors are market leaders and experts in all types of commercial real estate.
Equipping Weapons for the Distressed Asset Battle
SVNART (Sperry Van Ness Asset Recovery Team)
Real Estate Investors, Owners, and Mortgage Lenders are confronted with one of the most challenging and debilitating economic climates in history. Both the economic viability of the asset base and the economic stability of property portfolios appear to be dramatically eroding. Significant property sale slowdowns, an ever-increasing property-listing inventory, compounded with the inability to secure long-term debt on maturing CMBS Loans and over-leveraged assets is putting excessive market duress on the real estate investment community.
Stress is emerging on three different fronts and these include: (a) the property level (b) the ownership level and (c) the financial level.
Property level issues can range from tenant bankruptcy, slow lease-up absorption of a development, construction overruns or under-capitalized equity transactions. Failed conversions or redevelopment activities also fall into this category. Owner issues typically involve financial pressure induced by an overleveraged partner or the bankruptcy of a general partner. Mezzanine Lender takeovers also are included in this category. Financing issues comprise the third level of these trouble sectors and typically involve loan delinquencies and loan maturity and maturity default brought from refinancing difficulties.
Asset Market Valuation is becoming ever-increasingly perplexing as market cap rates continue to rose due to decreased transaction volume and value erosion. These changing metrics have skewed the traditional methods to which propety valuations have been measured.
While 2008 cap rates may have reflected sub-8 caps in the year-end wrap-up reports, market experts are predicting the return to the traditional 10% cap rate that was normative in 2002. Institutional lenders, banks, regulators, pension funds, REITS, insurance companies, and governmental and quasi-governmental lending agencies are confronting this erosive value degradation on a daily basis.
Portfolio Managers are considering what options are available to address both non-performing and distressed assets. Individual mangers are finding it increasingly difficult to try to be both a “portfolio manager” and a “workout strategist." In response to this situation, SVNART was created.
The SVN Asset Recovery Team consists of a national network of over nine hundred Real Property Professional Advisors in 150 different markets segregated into 10 different regional markets. Its capacities include asset valuation, asset value maximization through property management and asset repositioning, and asset disposition, which can be effectively handled through the SVN 900 member national brokerage team or alternatively through an accelerated marketing SVN Auction Team.
As property listing inventory swells at unprecedented velocity, the timing and ability for property professionals to get ahead of the disposition curve is paramount. SVNART has a proven national network of seasoned professionals who can deal with assets in not only the primary markets but within the secondary and tertiary markets as well. SVN has an international reach with a national presence which comprises local market experts to address even the most challenging property problems.
SVNART has established strategic alliances with various niche professionals to further supplement its own capabilities, including: (a) Integra Realty Solutions the largest US Appraisal firm in the US, (b) RADCO-Troubled Asset Solutions (c) US Surveyors (d) First Financial Network, (e) First American Title and (f) various property management firms including SVN Coast and SVN Equities Property Management Company. RADCO has the distinctive capability of keeping a mortgagee out of the chain of title on failed loans if desired.
SVNART features a single-point-of-contact with sophisticated market tools to address portfolio problems in a timely fashion. This arms portfolio managers with the necessary horsepower to place their asset portfolio back on track and realign opportunities to optimize value.