The Commercial team at MountainView Securities has more than 20 years of advisory experience with commercial whole loans, working in various capacities with real estate lenders and investors, traditional banking conglomerates, and investment banking firms. This experience gives us unique insight into borrower, lender and investor mentalities and motivations, and it helps us effectively analyze, negotiate and resolve distressed loan situations. We also rely on our core strengths in real estate market analysis, property operations, capital markets, financial structuring, asset repositioning, and partnership management; our key relationships with investors who have capital for the right opportunities; and our ability to pursue other third-party investors based on a borrower’s specific needs.
Approach
Our approach is to serve as the trusted middle man between borrowers, lenders and investors, ultimately seeking to create and implement viable restructuring and recapitalization solutions for borrowers who are confronting maturity, technical, or financial issues. Through independent discussions with all parties, we work to negotiate a favorable loan modification or a market-driven discount purchase of the note that generates an attractive asset for the investor.
Process
Upon engagement, we work through full disclosure discussions with the engaging party (borrower or lender) to identify their challenges. After review of property descriptive information, competitive market data, property cash flows, appraisals, loan terms and other key information, we outline options for resolving the issue.
Next we work with the counterparty to assess the viability of resolution or purchase consideration levels. With that knowledge and underwriting analysis in hand, we work toward lender negotiation, or we approach an investor about a loan purchase bid, potential gap loan investment, and prospective new loan terms and general restructuring. If a loan purchase is pursued, the soft letter of intent is presented to the lender and, if accepted, we move to a formal loan purchase and sale agreement. Third-party legal counsel is then engaged to accommodate due diligence, re-working ownership, and re-papering the loan transaction.
Restructuring
We will put together a loan modification proposal and negotiate the terms of an extension or appropriate form of payment relief. Proposals may include principal reductions, waiving prepayment penalties, reduction of amortization, lowered interest rates, and extensions of maturities.
Recapitalization
We will negotiate a plan for recapitalization with the lender or workout officer, based on a careful analysis of the property operations, credit issues, risk assessment, financial modeling, and cash flow projections, while confirming the feasibility of the proposed new capital structure and terms with select capital sources, mortgage brokers, and capital advisors.