Remington Capital

I expect that we are going to begin to see more and more owners of income producing real estate having to deal with paying off their mortgage loans as they reach the date when the balloon payment is due. In most cases the balances will be higher than the value of the property. With our distressed property recapitalization program available to these owners we are well positioned to guide them through a successful negotioation with their lender.

We keep seeing the term distressed real estate more and more in the press and on the business news. I am sometimes asked what does that mean. Maybe the easiest explanation would be that the value of the subject property has fallen to a number which is lower than the unpaid balance on the mortgage. Remington has the ability to help both owners and lenders to optimize their options when these circumstances occur.

In this month’s Scotsman Guide I’ve written an article on options for brokers to consider as they work with borrowers who are under extreme stress due to the market conditions. The good news is that there are options out there, and Remington can help.  Read more here in the February issue of Scotsman Guide.

http://www.scotsmanguide.com/pdfs/BogdanoffCOM0210.pdf

We’ve been able to help a number of brokers already to obtain financing through the methods described in the article. Reach our to the team at Remington and we may be able to help you, too, with our expert advisory services, our best access to commercial capital and the Distressed Owner Recapitalization Program.  Thank you!  Andy Bogdanoff.

I am pleased to announce that our core lenders and investors seek new opportunities to deploy capital, and they are relying on Remington to deliver these opportunities to them.

We need your help. If you are a broker looking to complete a transaction on behalf of a client, we can help you access the money you need, even if the owner is upside down on their project.

Remington has access to hundreds of capital sources ready, willing, and able to provide equity and debt financing. The commercial capital is available. Don’t wait until you’re at the end of your rope. Call us today for a solid lifeline to capital.

Our Capital Markets and Structured Finance Groups are actively seeking brokers who have challenging but viable commercial real estate projects.  We often work with those who have been denied financing from banks.

Thank you – Andy Bogdanoff

Enough already with the bad news. We get it!

Our focus at Remington is to continue bailing out brokers and owners with fresh access to capital – letting them ‘stay in the game’.

The distressed commercial real estate market is up to $180 billion right now. Distress is spreading like a plague among all commercial property types, and can be found in just about every city, town and hamlet across the country. And that’s just the beginning. The on-going liquidity crisis, coupled to plunging property values, is expected to cause thousands of commercial real estate and other businesses to find themselves in need of more than trillion dollars in refinancing over the next few years with too few banks willing or able to extend the credit.

The answer for many distressed owners – other than bankruptcy or selling out – is Distressed Owner Recapitalization (DOR). At Remington, we partner with brokers and distressed borrowers, using the Remington global network of private sources of capital to recapitalize troubled properties. We do all the work. And brokers share in the benefit, earning 25% of the closing fee for every broker referral. To find out more about the Remington DOR program and how it can work for you, give our professional team at Remington a call at 480-251-9591. We can help!

Thank you. www.remingtonfg.com

Remington is implementing the Distressed Owner Recapitalization Program to our network of brokers in the US and beyond. It gives brokers an opportunity to give distressed owners a way out of their commercial property predicament.

For those unable to refinance loans, we can tie together the expert advisory services of Remington with access to hundreds of active private funding sources ready, willing, and able to recapitalize troubled commercial real estate assets across the capital stack.

Tyler Hufford, Executive Managing Director at Remington, articulates the program in a brief presentation posted online.  I welcome you to login and listen here: https://remingtonfg.ilinc.com/perl/ilinc/lms/register.pl?activity_id=zrwpcvp&user_id=

As you have questions or wish to participate in the program, please give our team a call!  Thank you – Andy Bogdanoff.

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.

Anyone doubting that the commercial real estate industry is careening toward disaster may want to peek at the latest CMBS delinquency figures. They are soaring!  Up to $32.55 billion in September from $5.39 billion a year ago. That’s a five-fold increase in just 12 months and more than 14 times higher than in March 2007.  Translation: Banks aren’t the only ones undergoing a liquidity crisis. The fact is many commercial real estate owners and developers don’t have sufficient cash flow to service their debt.

That’s just an inkling of the real disaster confronting owners and developers in the next few years. Coming is a powerful one-two punch that may knock out thousands of real estate owners and developers across the country. Property values are plunging and are already down a whopping 40% since 2007. Worse yet, banks lack the liquidity to refinance even half of the $1.2 trillion in commercial real estate debt due to mature by 2013. That means thousands of owners may be unable to refinance their properties. Many distressed owners will have few choices other than to sell their property, if they can find a buyer, or declare bankruptcy.

As a result, Remington has been working closely with brokers and owners developing and alternative option. We call it the Distressed Owner Recapitalization (DOR) program. It’s new and focused solely on helping distressed owners recapitalize troubled properties that banks can’t or won’t refinance. Key to the DOR program is the Remington global network of active public and private sources of fresh, new capital available for investment in troubled properties.

Not to be overlooked by owners or brokers is the fact that recapitalization of distressed properties can be a market opportunity for all concerned. While there is a loss of equity in the transaction, recapitalization offers the distressed owner something that selling the property or declaring bankruptcy cannot. It allows the owner an opportunity to stay in the game and to participate when market values turn around.

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

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