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.[IMAGE]
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[COLUMN_BREAK]
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.""