Remington Capital – Andy Bogdanoff

We are often presented with clients who have had their financing requests turned down one or more times. Notwithstanding this we are often able to arrange financing for these clients. Very often the client may have failed to present their financing request in the best light or they just did not approach a capital source that was right for them. Our value add is that we can present the transaction in its most favorable light and do have the right capital sources.

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.