Pivot Points Newsletter: February 2023

    coronavirus corona virus

    Case Studies

    Student Housing

    Background: During COVID-19, when students were sent home and learning was moved online, a student housing community experienced crime, occupancy decline, and liquidity constraints. As a result, the organization needed a capital injection for repairs and operations. The maturing bridge loan contained extension options and the covenant conditions could not be met by the property.

    Our Role: Advisor


    • Negotiated covenant waivers
    • Reduced fees for the extension of the maturity date, incentivizing the sponsor’s new equity injection for repairs
    • Changed property management and stabilized the property through the 2021-2022 school year
    • Generated covenant and fee concessions that allowed the sponsor to forgo a $7M+ capital call
    • Stabilized property was positioned for sale and the loan was retired in 2022

    Specialty Office

    Background: An owner-occupied office building had been financed with bank debt and very low leverage prior to securing a third-party lease for the entire building. With the lease, the owner wanted to maximize the value of the building and refinance the bank loan.

    Our Role: Advisor


    Identified a new financing source to retire the full-recourse bank loan with a higher loan to value and non-recourse debt, allowing the owners to monetize part of their equity. After a year of lease seasoning, the building was sold, and the owners were able to fully realize their investment and ~$1M ROI.

    Recent Engagements

    Chain of Fitness Clubs

    Our role: Retained by the chapter 7 trustee to perform insolvency and valuation analysis for litigation support of various recovery actions.

    Beach, Golf, and Yacht Resort Community

    Our role: Conducted a forensic investigation of financial reporting and management services that were provided by a third party.

    Vitamin Company

    Our role: Served as financial advisor in chapter 11 bankruptcy. We prepared a new business plan with detailed financial projections and managed negotiations and settlement of claims against the Debtor’s estate.


    ACG New York DealMakers Dinner Series (Feb. 9) – Speaking/Attending

    12th Annual Distressed Forum for Bank Special Assets (East) (Feb. 14-15) – Attending 

    Structured Finance Association SFVegas 2023 (Feb. 26 – Mar. 1) – Attending

    McGuireWoods’ 19th Annual Healthcare Private Equity and Finance Conference (Mar. 1-2) – Speaking/Attending

    National Real Estate Women’s Forum (Mar. 2) – Speaking/Attending

    2023 ACG Texas Capital Connection (Mar. 7-8) – Attending

    IWIRC's 20th Annual Spring Conference (Apr. 19-20) - Attending

    ABI Annual Spring Meeting (Apr. 20-22) – Attending

    ABI VALCON 2023 (May 1-3) – Attending 

    Subject matter expertise

    • kevin clancy
      Contact Kevin Kevin+Clancy kevin.clancy@cohnreznick.com
      Kevin Clancy

      CPA, JD, CIRA, CFF, CTP, Global Director, Restructuring and Dispute Resolution Practice

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    This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.