Remington Capital – Andy Bogdanoff

Carrying over from 2009 we are continuing to see a trend of more and more clients who have been told that their existing lender will not be willing to renew their loan. In most cases the client has never missed a payment and has performed in accordance with the terms of their loan agreements. We believe this is almost always due to a change in policy by the lender or their lack of liquity that continues to create this problem. In most cases we have capital sources who are happy to meet the needs of these outstanding clients.

I am really happy with our two new additions to the capital structuring department. Our increased coverage in this area should enable us to achieve even better levels of service to our clients.

Donn Reinelt has joined the Capital Markets Group of Remington as Managing Director. Donn has been a top advisor to major institutional investors for decades and brings a wealth of experience and skills to the Remington team, and he already is helping us to expand our unmatched connections to active lending sources on behalf of clients for Remington.

With over 20 years experience as an institutional investment consultant, Donn Reinelt has worked directly with large and small public and corporate pension plans, endowments and foundations, and major family investment groups. Prior to joining Remington, he held senior business development and consulting positions at Sciens Fund of Hedge Funds, Northern Trust – Wealth Management, and KMPG Investment Consulting Group, specializing in alternative investment solutions for U.S. and European clients.

At Remington Donn will be responsible for identifying, expanding and managing strong and on-going working relationships with the company’s global network of public and private capital sources and for developing and introducing proprietary real estate financing funds to institutional investors.

The extensive close-up lender experience Donn brings to our Capital Markets Group adds to the overall ability by Remington to better serve the needs of our clients across the capital stack.

A Chartered Alternative Investment Analyst and member of the CFA Institute, Reinelt has an MBA in finance and international trade from the University of Chicago and a BS Degree in Engineering from the University of Michigan.

Since 1993 Remington has helped structure billions of dollars in debt and equity financing for hundreds of commercial real estate and general business clients, particularly those unable to secure traditional bank financing.

If you’ve been thinking that the U.S. is largely alone with the pending disaster in commercial real estate, think again. Distressed commercial sales are a growing global reality, not just an impending disaster in the U.S.  Last week’s news about Dubai is further evidence of the global challenges.

Eighty percent of countries recently surveyed showed an increase in distressed sales compared to three months ago, with the U.S. experiencing the second largest surge.

The rush for commercial capital is underway, and banks are in a poor position to answer the call. Lack of bank liquidity is only part of the problem. Terms have also become so stringent that, even if sufficient credit were available, two-thirds of owners needing refinancing “won’t make the grade,” according to Deutsche Bank.

With $1.2 trillion in commercial real estate debt maturing by 2013, owners are beginning to scramble in droves trying to refinance maturing loans. But with only 30% of commercial banks able to lend anything, many owners are likely to come up empty and be forced to sell their property – if they can find a buyer in this down market – or declare bankruptcy. There is another choice, however Recapitalization!

For experienced brokers, the opportunity to help distressed owners recapitalize property they are unable to refinance opens a significant avenue for added business growth over the next few years.

At Remington, we are working with brokers and their distressed owner clients to recapitalize troubled properties by identifying new equity partners and securing new debt. We call it the Distressed Owner Recapitalization (DOR) program. What makes it work is our unmatched global network of public and private sources of fresh, new funding that is available for investment in troubled properties with intrinsic value. For many distressed owners, the Remington DOR program is the difference between giving up equity to stay in the game and giving up altogether.

I’m Chairman Andy Bogdanoff, and you have my commitment that Remington is redoubling our efforts to help the recovery from this devastating financial tsunami.

Remington has hundreds of actively-lending capital sources for commercial construction loans. A commercial construction loan is any loan used to finance the construction of commercial real estate, such as office complexes, retail centers, apartments, hotels, warehouses, and other commercial properties. In general, construction loans are short-term and meant to be paid off when construction is completed.

While construction loan programs offer differing features, they also have a number of characteristics in common. For example, construction loans generally require interest only payments during construction; terms typically are for 12 to 36 months; most lenders require a 12-month interest reserve; and pay off occurs when a certificate of occupancy is issued.

Because borrowers usually require follow-on financing when a construction loan comes due, lenders sometimes offer construction-to-permanent loan programs that provide construction loans during the building phase and longer-term fixed-rate financing that kicks in upon issuance of the certificate of occupancy.  This two-in-one loan process tends to be more convenient and less costly for borrowers in that there is only one loan application and one closing, with associated fees, instead of two. 

Because of the complexity of construction loan financing, borrowers may find it difficult to compare construction-to-permanent loan financing with the two-loan process. That’s where the experts of Remington can help.

The combined market-focused expertise of the Structured Finance Group at Remington and our Capital Markets Group, with its global network of public and private capital sources, takes the guess work out of construction lending so that commercial real estate clients are able to secure the best possible interest rates and terms consistent with their objectives and market conditions at the time.

Thank you!  Please give our team at Remington a call for more information.  Andy Bogdanoff

We are very pleased here at Remington to share our Distressed Owner Recapitalization Program with our network of brokers. Our ability to help owners obtain financing enables our brokers to have a greater impact on property owners with this program that meet their specific needs in these troubled times.

Remington has your best access to commercial capital. We have relationships with hundreds of actively-lending funding sources, and we are using these contacts to help brokers and owners.

Last week I spoke to broker groups across the country on the program, and we found our community of brokers to be very enthusiastic about the commercial financing results that we have achieved so far AND the possibilities that we can help them . 

My performance on the video doesn’t completely reflect just how excited I am that we’ve been able to step up our support of the financing community.  Hey – I’m not video star – but I care – and everyone at Remington cares – about helping out.  We have developed lending connections across the capital stack over the past 16-17 years that are helping our clients.

Take a look here at this video introducing the Distressed Owner Recapitalization Program - what do you think?  https://remingtonfg.ilinc.com/perl/ilinc/lms/register.pl?activity_id=bmwstfm&user_id=

Thanks!  Andy

Andy Bogdanoff – Chairman, Remington

The team we’ve assembled at Remington is experienced and trained to deliver commercial lending solutions that typically no one else can offer. The keys to successfully closing even the most complex and challenging commercial financing transactions are:

• Knowledge of the market.
• Experience in solving even the most problematic projects.
• Creativity in restructuring transactions.
• Ready access to hundreds of active capital sources.
• Commitment to pull it all together.

The advisory services at Remington combine all five attributes needed for success in today’s tight market, especially for those commercial projects unable to obtain debt, mezzanine, or equity capital from conventional sources.  Those companies most likely to benefit from our services include those:

• Currently restructuring.
• Emerging from bankruptcy.
• Needing recapitalization.
• Considering leveraged acquisitions.
• On a tight timeline to access capital.

At Remington, our knowledgeable and experienced team of experts works closely with clients to evaluate and creatively restructure transactions into new financing opportunities. Combining this insightful advisory service with the strong relationships we have developed with hundreds of active funding sources, clients of Remington gain the industry’s best access to competitive commercial capital available today.

Contact us today to speak with one of our experts to find out how Remington can help make your financing transaction a success.  Thank you. Andy Bogdanoff

I am proud of the way our team at Remington is responding as we roll-out the Distressed Owner Recapitalization Program across the US.  Through our best brokers we are identifying and helping distressed commercial property owners and developers who can benefit from recapitalization of their existing financing. So much discussion today is about new owners going after distressed properties – how about existing investors?  Shouldn’t we be working for them, too?

The problem facing us is historic. The supply of commercial real estate debt has shrunk dramatically.  Further compounding the liquidity problem is the fact that most commercial banks are not in a position to extend credit to new borrowers because they are struggling to manage their deteriorating commercial loan portfolios. 

The continued lack of liquidity in the system has driven yields to unprecedented levels.  The high cost of funds results in more distressed owners having difficulty refinancing their existing debt. And property values are down significantly. These dynamics create problems for owners when they seek to refinance their properties.

The looming $1.2 trillion catastrophe for the U.S. banking system and economy can be avoided if our industry works together to protect current investors at least to some degree so that they at least will benefit from when the market does eventually turn back up.

If you have questions on how we can help with recapitalizing distressed owner debt, please give us a call in any office and we’ll be happy to help. We’re also starting web seminars beginning next week – please ask if you haven’t received information on these.  Andy Bogdanoff – Chairman, Remington

Much of the news in the commercial real estate industry today focuses on investor opportunities to acquire distressed debt. What about the troubled owners? What relief can be provided for distressed owners?

Remington works with these owners every day and we want to make a difference for them.  Therefore we’re introducing the Remington Distressed Owner Recapitalization (DOR) Program that focuses on helping troubled owners and developers.

The Capital Markets and Structured Finance Groups at Remington are offering daily solutions to the on-going liquidity crisis by providing access to more active funding sources across the capital stack. When combined with espert advisory services, the new program positively impacts owner recapitalization.

1. For experienced owners of existing income-producing properties looking to refinance, the Distressed Owner Recapitalization Program offers access to investors that will purchase the note from the bank at a discount. Owners will continue to make the original paymetns to the new investor and participate in the up side when values increase.
2. For the experienced developer of a partially completed project that needs capital to finish and operate the property, 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 the property values increase.

We look forward to working with you as we introduce this new program in October.