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The Alter Group Announces New Affiliate

In an announcement Thursday, The Alter Group, a corporate real estate developer based in Chicago, said it has formed Alter Asset Recovery, which will provide expedited solutions for lenders and special servicers holding distressed properties.


The formation of this new affiliate comes at a time when distressed commercial real estate assets are potentially the largest challenge facing banks and other lenders. According to research firm Real Capital Analytics, more than $160 billion of commercial properties in the United States are now in default, foreclosure, or bankruptcy.

Alter Asset Recovery will lead lenders through the financial, operational, asset-management, and reporting steps necessary to ensure a successful takeover and sale of


distressed properties. It is led by industry veterans James I. Clark III, managing principal of EnTrust Realty Advisors and the former president of the investment services group at Transwestern; Samuel F. Gould, president of Alter Asset Management; and Ronald M. Clarkson, president of Alter Construction Management.

The new affiliate will focus on institutional-caliber office, industrial, medical, mixed-used, and corporate real estate assets. Michael J. Alter, president of The Alter Group, said as a developer and owner, the company is able to evaluate distress from an operational and underwriting perspective to extract its underlying value.

Services of Alter Asset Recovery include cost/benefit analysis of loan modification options, implementation of an asset recovery plan for a foreclosure or deed-in-lieu transaction, and forensic analysis of operational efficiency and required property capital investments, in addition to establishing and repairing tenant relationships, re-engineering and resuming stalled construction projects, and repositioning assets for recovery and a successful sale.

""This is a critical year for banks, thrifts and special servicers,"" Clark said. ""The FDIC has absorbed $30 billion in debt from failed banks. Some $40 billion in commercial mortgage-backed securities (CMBS) loans arrive in 2010, straining special servicers to sell assets. Distressed commercial assets can make or break balance sheets this year.""

About Author: Brittany Dunn


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