Pivot Points Newsletter: February 2023
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
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.
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.
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
CPA, JD, CIRA, CFF, CTP, Global Director, Restructuring and Dispute Resolution Practice
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