Lease Administration and Property Accounting

Lease Administration

  • Lease abstraction
  • Lease set-up
  • Set-up of options, clauses and recoveries
  • Monthly and special billings
  • Cash application
  • Collections support
  • Lease and database audits
  • Annual CAM audits
  • Estoppel and SNDA preparation

Property Accounting

  • Accounts receivable
  • Accounts payable
  • General ledger account reconciliations
  • Monthly closing packages and workbooks
  • Review of third party statements
  • Budgeting and forecasting
  • Accounting and finance projects
  • Accounting system setup and implementation
  • Roll-up and consolidations

Dedicated Staffing Solutions

  • Due Diligence and Loan Underwriting
  • Capital Markets and Securitization
  • Asset Management/Loan Workouts/Special Servicing

Credit and Litigation Searches/KYC

Limited/Pre-Qualifier (24 hrs)

  • OFAC
  • Regulatory Databases
  • Sanction Lists
  • Relevant Media
  • Criminal Records
  • Real Time Incarceration Records

Standard Due Diligence (3 to 5 business days)

  • Limited/Pre-Qualifier Plus
  • Credit Report
  • Federal Litigation
  • County Litigation
  • Federal Criminal
  • County Criminal
  • United States Tax Court
  • Bankruptcy
  • Liens and Judgments
  • Foreclosure Records
  • UCC
  • Corporate Filings

Enhanced Due Diligence (up to 7 business days)

  • Limited/Pre Qualifier Plus
  • Standard Due Diligence Plus
  • Professional Licenses
  • Business and Corporate Affiliations
  • Additional Docket and Litigation Research/Risk Summary

Revenue Management

We believe one of the most important aspects of managing a real estate portfolio is Revenue Management or Lease Administration. Without a standardized lease management approach companies will find themselves constantly searching for lease documents, clauses and important financial terms. Companies risk losing revenue from missed bumps, miscalculated recoveries and missing critical dates. The potential for errors and the risk of missing dates, submitting inaccurate rent bills or not being aware of specific responsibilities can have a substantial impact on the bottom line.

Our experienced team of Lease Administrators understand the importance of accurate abstracts and getting accurate data into your property management system. We review all data abstracted and with our quality control process determine that all critical data points are correct. We have established processes that reduce errors in billing, recoveries and critical clauses, and these data points are accurately captured and calculated. Lease Administration is the teams only responsibility and they have a thorough understanding of the impact on revenue and operations. We focus on what’s at risk and make sure they don’t impact clients.

Debt and Equity Underwriting

  • Debt Underwriting (CMBS, Agency/GSE, Bridge, Mezzanine, Construction, LIHTC, Warehouse, Syndication Loan Underwriting)
  • Agreed Upon Procedures (AUP) – detailed CPA financial testing and account reconciliations
  • Loan Sizing
  • Rent Roll/Lease Audits
  • Detailed CAM/RET
  • Recovery Calculators
  • Bank Reconciliations
  • Third Party Review (ESA/PCA/Appraisal)
  • Credit Committee Presentations, Memos or Asset Summaries
  • Assumption Underwriting
  • Transaction and Data Room Management
  • Equity Cash Flow Modeling (ARGUS, Excel)
  • Transaction/Pricing Analysis
  • Collect market performance data, interview market participants, and assess comparable properties for competitive benchmarking
  • Site Inspections and Lease Audits
  • VBA programming, Statistical Analysis, and Database Management

Capital Markets and Securitization

  • In depth experience across multiple transactions including CRE CLOs, Conduit and SASB, Agency, and Small Balance. Our team handles re-underwriting and ASRs, prelim and accounting tapes, term sheets, and clearing exceptions on the back end.
  • CLO Packaging and Securitization Support
  • Data Tape Creation and Collateral Term Sheets
  • REG ABII Reviews
  • Performing/Non-Performing Loan Analysis and Pricing
  • B-Piece/Risk Retention Investment Analysis

Asset Management and Servicing

  • Asset and Portfolio Management Strategies
    Asset and portfolio level business plan development, implementation and surveillance
  • Operating Statement Analysis
    Input, analysis and normalization of property level operating statements, rent rolls and budgets
  • Construction Lending and Reserve Management
    Analysis and processing of draw requests and supporting documentation
  • Loan Modifications and Lender Approvals
    Analysis and recommendation of modifications to existing loan documents, lease approvals, and loan assumption underwriting
  • Property and Market Inspection
    Physical inspections of the property, market and comparable analysis, property management company assessment
  • Workout Services
    Development and implementation of resolution strategies and management through workout, receivership, foreclosure and disposition
  • Workout & REO Services
    Operation of REO properties and execution of liquidation strategies
  • Ongoing Management Support
    VBA programming, Statistical Analysis, and Database Management
  • Revolving Credit Facilities
    Covers over 235 positions with investment banks and supports over $10 billion in book value for various revolving credit facilities

Credit Risk Assessment

Corporate Credit Risk Assessments

  • Analysis of qualitative and quantitative factors through a standardized rating scorecard model supporting the Tearsheet-product (“T/S”)
  • T/S reviews to manage tenant related Credit Risks (e.g. potential new acquisitions, rating downgrades, corporate events)
  • In-depth Credit Risk Memos (beyond T/S) to provide a more comprehensive assessment for specific tenants (upon request)

Ongoing Risk Control

  • Market Risk > Bloomberg Launchpad, plus added research capabilities
  • Issuer Ratings > maintenance of Watchlist (>500 entities)
  • T/S reviews are initiated via automated trigger functions (Dashboard-implementation)

Reporting

  • Maintenance of custom-built Dashboard, which summarizes the status of T/S reviews (for b/s transactions), regular Watchlist (“WL”) reporting, Special Projects, and other tasks assigned
  • Regularly scheduled team calls between clients credit, and/or underwriting team
  • Monthly summarized rating migration reports
  • Public rating validation for Top entities by ARI
  • Regular financial performance update for top tenants (by ARI)

Insurance Reviews

  • Provide detailed insurance risk analysis on GSE (Government Sponsored Enterprise Loans), HUD, Construction, Bridge, CMBS and Balance Sheet Loans.
  • Draft waivers and provide alternative recommendations on coverage deficiencies
  • Recognize the deadline-driven nature of transactions and help make the complexities of insurance more understandable while keeping pace with the deal to close loans efficiently and on time.
  • Create a blanket analysis to determine if coverages are sufficient in the event of a catastrophic loss
  • Provide recommendations for environmental coverages based upon the asset’s region
  • Analyze 3rd party reports to determine if special coverages are required (i.e. Flood, Equipment Breakdown, Earthquake, etc.)
  • Analyze flood certificates from FEMA to determine if the appropriate coverage is required prior to loan closure