EisnerAmper LLP Real Estate Group Builds Support for Clients in a Volatile Market
New York, N.Y — Recent combination doubles size of real estate practice – Market stability concerns, financing challenges face developers and owners.
While some corners of the United States real estate market are showing signs of recovery, massive debt maturities and a lack of financing resources continue to pressure companies in the sector, notes EisnerAmper LLP. Now the 14th largest accounting firm in the U.S., EisnerAmper recently expanded its real estate group through a business combination and is uniquely positioned to offer developers, property owners/managers and others in the industry an extensive array of professional services, along with a strong client-centric focus.
“The market has begun a slow recovery, as shown by stabilization in commercial property vacancy rates and home prices,” said Ken Weissenberg, co-chair of EisnerAmper’s real estate practice. “However, real estate owners still face an enormous burden of maturing debt, along with valuations that are unlikely to support their refinancing needs. Distressed debt specialists are circling the industry. To help clients manage through this environment, EisnerAmper offers vast expertise in addressing financing alternatives, valuation and tax considerations, as well as a track record of unparalleled service to the real estate industry.”
EisnerAmper offered a number of examples of the impact of the current economic environment on real estate companies:
- It is estimated that nearly $1.4 trillion of commercial real estate debt will mature in the next several years. Most of that debt was incurred during periods of higher property values and more aggressive bank lending policies. Consequently, it is unlikely that the current valuations and available loan-to-value ratios will permit owners to refinance the total amount of the maturing debt in 2012.
- The commercial mortgage backed securities (CMBS) market has essentially collapsed, and is only now starting to recover.
- In this environment, real estate companies need to seek creative solutions.
- At the same time, alternative sources of funding have emerged. A number of private equity firms and other investors are focused on providing “recovery” financing to real estate companies, albeit on terms that are highly favorable to the investor. Government resources such as the Technology Innovation Program (TIP) and Green Works also may offer solutions to some owners.
EisnerAmper is prepared to help its clients address the challenges arising from today’s real estate market dynamics. The firm was recently formed through a combination of two leading regional accounting firms, Eisner LLP and Amper, Politziner & Mattia, LLP, both of which had extensive real estate practices. The combination created the largest non-Big 4 firm in the greater New York metropolitan region.
Drawing upon the strengths of each predecessor firm, EisnerAmper has nearly 75 professionals in its real estate group. The firm has deep experience in understanding highly technical financing structures, credit enhancement, tax planning, restructuring and other services critical to clients in the real estate marketplace.
“The combination of Eisner’s and Amper’s practices has given our firm an expanded range of services for clients in the real estate community, including owners, operators, developers, contractors and builders, as well as providers of financing and investors in distressed debt. We serve clients ranging from publicly-traded companies to family-owned businesses. Yet, we have maintained our traditional focus on serving middle market clients whose needs can be overlooked by larger accounting firms,” said Gary Master, co-chair of EisnerAmper’s real estate practice.
About EisnerAmper LLP
EisnerAmper is one of the premier accounting, tax and business advisory firms in the United States and the leading regional firm in the Northeast. EisnerAmper provides a wide array of services to a diverse client base including publicly traded and privately held companies and high net worth individuals and family groups. For more information, please visit EisnerAmper at www.eisneramper.com.