Remington Capital – Joel A. Nathanson

The majority of institutional equity that has been raised over the last 3 years, was to purchase distressed notes. These distressed notes are made up of  a combination of preforming and non-preforming assets. Unfortunately, for the large private equity funds the number distressed notes hitting the open market is minimal compared to their initial expectation. The major reason, banks have continued to “extend & pretend” the current notes as long as they are cash-flowing assets and can service the debt. For the properties that banks won’t negotiate on, the only option is to recapitalize or be forced in to foreclosure. Remington’s Distressed Property Recapitalization Program (DPR) is the best option for property owners that are in this situation. With this program, we can work with our over 500 capital relationship to bring all parts of the capital stack to the table and find a viable solution.

All last week we were working with our Chairman Andy Bogdanoff and the team to fully educate everyone including our brokers on the Distressed Owner Recapitalization Program. It’s a creative and thoughtful series of financing solutions in answer to series commercial real estate challenges.

So much of today’s discussions are on investor opportunities to acquire distressed debt. What inspires me about the Distressed Owner Recapitalization Program from Remington is that it focuses on the owners and developers who are in trouble.  These are the very people that our brokers and we work so hard for day in and day out. They are unsung American heroes – and we need to fight with them to preserve their livelihood.

The Capital Markets and Structured Finance Groups at Remington are offering a powerful financing solution by providing unprecedented access to funding sources across the capital stack and expert advisory services to effect the recapitalization of each owner’s property.

We have two primary solutions. For the experienced owner of an existing income-producing property looking to refinance, Remington has access to investors that will purchase their note from the bank at a discount.  The owner will continue to make the original payments to the new investor and participate in the upside when property values increase. 

A second solution is for the experienced developer of a partially completed project that needs capital to finish and operate the property. In this case Remington has access to investors that will purchase the note from the bank at a discount allowing the developer to complete the project and operate the property.  The developer will continue to make the original payments to the new investor and participate in the upside when property values increase.

We directly support brokers working with distressed owners and developers, and so if you are a broker and you know clients that could benefit from a recapitalization of their existing debt, please give me a call.

Joel Nathanson – Remington