THE FINANCING QUESTION
When this becomes relevant.
Start with the business circumstance, rather than choosing a product in advance.
- A loan is approaching maturity with limited refinancing options.
- The asset has fallen behind on debt service or breached covenants.
- Lease-up or stabilization is taking longer than the original financing allowed.
- Ownership needs to assess a recapitalization, sale, discounted payoff or rescue-financing possibility.
THE ASSESSMENT
What we examine.
These considerations shape the financing discussion and the information required for a meaningful review.
| Review area | What matters |
|---|---|
| Asset & cash flow | Occupancy, tenancy, operating income, capital expenditure and value support. |
| Debt & deadlines | Maturity, default status, servicing context, liens, guarantees and legal timelines. |
| Sponsor plan | Available equity, proposed operating changes, lender communication and the exit case. |
THE STRUCTURING PERSPECTIVE
A plan that fits the situation.
The first task is to establish what is feasible and time-sensitive. A plan may involve an amendment, forbearance, refinancing, asset sale or new equity, but each depends on creditor agreement and the asset economics. Legal advice, enforcement responses and insolvency proceedings belong with qualified counsel.
TRANSACTION READINESS
What to prepare.
Begin with a concise overview. Detailed and sensitive records follow through an agreed delivery method.
- Loan documents, servicing correspondence, default notices and maturity dates.
- Rent roll, operating statements, current budget and capital-expenditure requirements.
- Sponsor resources, ownership records, value support and proposed resolution timetable.
The document list is indicative. The agreed service role, lender requirements and transaction circumstances determine the final package.