Real Estate Debt Advisory Services

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Working with lenders to achieve adequate funding for property acquisitions, improvements and operations is critical to the long-term success of real estate investments. EisnerAmper’s Real Estate Services Group supports real estate companies and their investors in developing business and financial strategies in up and down market cycles. We have deep expertise across property types and markets, and our clients range from family owned businesses to REITs and private equity funds.

Our advisors understand the critical steps required to successfully capitalize real estate investments, including refinancing and restructuring existing debt. We approach debt advisory holistically to optimize outcomes, bringing together experts who understand investment strategy, property management, real estate finance, and the accounting and tax implications of alternative debt solutions. Through detailed analysis of rental revenue and operating expenses, we work to model supportable cash flow and develop alternative tax efficient debt strategies. We work alongside our clients from planning to closing, with the goal of realizing sustainable results.

To ensure our clients have the best support, we have assembled an integrated team of specialists in the following areas:

  • Real estate business planning, operations, leasing, cost reduction and internal controls
  • Cash flow modeling
  • Real estate tax planning
  • Restructuring and bankruptcy
  • Fraud and forensics

Our services include:

Lender Discussion Preparation

  • Rent roll and lease analysis
  • Tenant financial analysis
  • Operating efficiency review
  • Hospitality operational assessment
  • Property/entity cash flow modeling
  • Sources and uses of cash monitoring
  • Debt covenant compliance monitoring
  • Strategic business planning
  • Assess long term recapitalization requirements

Loan Restructuring Strategy

  • Creating alternative refinance and restructure strategies
    • discounted payoffs
    • payment modifications
    • maturity extension
    • covenant waivers
    • reserve reductions
    • capital/collateral contributions
    • loan splitting/partial debt subordination
  • Tax planning for proposed debt strategies considering:
    • potential discharge of indebtedness income
    • foreclosure or deed in lieu transactions
  • Preparing lender presentations
  • Evaluating competing term sheets
  • Providing support in lender negotiations
  • Bankruptcy preparation and compliance

Additional Supporting Services

  • Management leadership and executive coaching
  • PPP loan forgiveness application guidance
  • Internal control enhancements
  • Fraud mitigation and prevention services
  • Overall project planning and management  

REAL ESTATE and COVID-19

The COVID-19 pandemic has had a significant negative impact on almost all sectors of the real estate industry. Tenant businesses have struggled to pay rent and many retailers and restaurants are permanently closing stores. While retail and hospitality have been the hardest hit, new workplace strategies may reduce office demand, and even the typically safe multifamily market is beginning to show signs of stress from continued historically high unemployment. All this translates into reduced property cash flow and uncertain valuations.

Our integrated team of professionals, with extensive experience commercial mortgage debt restructuring, supports real estate companies in assessing the business, accounting, and tax implications of debt restructuring strategies. Together, we have created a compendium of articles to provide executives with critical information as they consider how to best work through this period of financial distress with their lenders.

The articles in this compendium cover a broad spectrum of important topics, including:

  • Timing your first (or second) loan modification before the sunset of accommodative regulatory guidance
  • Preparing the right information and analysis for bank negotiations
  • Understanding the steps required to restructure a loan
  • Thinking about strategies in hospitality
  • Being aware of the many accounting and tax implications of any potential restructure

View our collection of Real Estate Debt resources below