We apply the experience and market knowledge gleaned from our investment activities and management consulting expertise to perform advisory work for both small and large institutions. Our primary areas of expertise include:
- Commercial Mortgage Loss Estimation and Portfolio Pricing. A leading alternative asset manager with $150 billion in assets under management retained us in connection with its acquisition of a portfolio of classified commercial mortgage loans. We underwrote each asset in the portfolio, surveying local property brokers nationwide to determine market cap rates, per-square-foot and per-unit valuation metrics, current market lease terms and competing inventory in the local market. Using these metrics, we estimated current revenues, operating expenses, NOI and property values for approximately 200 assets. Using this data, we created a model to estimate probability of default loss given default and projected monthly cashflows to maturity for each asset. The client used our underwriting and our cashflow model to generate price/yield calculations under a variety of scenarios, and to prepare summary- and detail-level reports for its internal investment committee. The client purchased the portfolio and achieved a 17% unleveraged IRR.
- Investment Portfolio Oversight. A portfolio manager for a global institutional asset manager with $13 billion AUM retained us to manage and harvest a $400 million legacy real estate portfolio, including a high rise apartment building under construction (left), hotels, office/industrial and cmbs.
- Esoteric Asset Sale. The former bankruptcy estate of a leading investment bank had been unsuccessful in marketing a portfolio of loans secured by international assets. They retained us to manage the portfolio, market it broadly and negotiate and close a sale. We developed a compelling value proposition and disseminated it to the marketplace of alternative investors. The portfolio was sold at a substantial premium to the indicative prices that the client had received prior to our engagement.
- Classified Asset Valuation. A community bank in New York hired us to evaluate, price and market their portfolio of classified assets. We re-underwrote and provided a valuation opinion for each loan.