NewSource Partners LLC to Aid Developers, Owners in Finding Solutions for Troubled Real Estate

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Two long-time experts in real estate finance and work-outs have launched NewSource Partners LLC to assist large developers and property owners in saving their businesses at a time when market conditions are challenging even the most experienced companies. Dallas-based real estate finance veterans Dwayne E. Toler and Steven H. Block say real estate developers and owners face the most difficult environment since The Great Depression and need outside expertise to navigate through work-outs, restructures, and refinancing.

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Two long-time experts in real estate finance and work-outs have launched NewSource Partners LLC to assist large developers and property owners in saving their businesses at a time when market conditions are challenging even the most experienced companies.

Dallas-based real estate finance veterans Dwayne E. Toler and Steven H. Block say real estate developers and owners face the most difficult environment since The Great Depression and need outside expertise to navigate through work-outs, restructures, and refinancing. Many companies in peril would benefit from working with outside experts, according to Toler.

"Restructures, work-outs, and refinancing all have potential risks and benefits for commercial property developers and owners," said Toler. "In addition, an intermediary can be more effective than the owners or developers in negotiating with the lenders. We also have access to other sources of capital through a strategic relationship with a global real estate services firm."

Over the course of his career as a third-party adviser, Toler has restructured approximately $500 million of real estate debt and raised in excess of $300 million of new equity capital for his clients.

Toler has also been a sponsor and principal in numerous real estate transactions, with a focus on purchasing distressed real estate.

Since 1990, Mr. Toler, through NewSource Capital and affiliates, has served as a sponsor of numerous private-equity limited partnerships. On a portfolio basis, NewSource Capital and its affiliates have achieved an internal rate of return of 42 percent for its limited partners, net of fees and carry.

Toler also served as general partner and chief financial officer of Beneventure Capital, a San Francisco-based private equity firm. Toler co-founded the firm with Gil Amelio, former chairman and CEO of Apple Computer and National Semi-Conductor. During his time at Beneventure Capital, Toler was responsible for originating ventures, capital formation, structuring of investment offerings and raising capital from institutional sources.

Early in his career, Toler was a senior management professional and consultant with Kenneth Leventhal & Company and Arthur Andersen, specializing in real estate and banking advisory work. While at Kenneth Leventhal, Toler was involved in providing debt restructuring services to a variety of real estate clients, including, syndicators, developers and real estate investment companies.

Steven H. Block has more than 28 years experience in banking, finance, and real estate. He has been both a principal and a consultant, and has experienced both the opportunities and pitfalls of the real estate cycles. Over the course of his career Block has restructured and refinanced over $1 billion of real estate debt and properties.

As an adviser, Block has focused on:

  •     Structuring and tax advice on the acquisition, operation, and disposition of companies and real estate properties.
  •     Real estate debt restructure services to real estate owners, developers, and the RTC/FDIC.
  •     Creative financing structures for the acquisition and disposition of real estate.

Over the last several years as CEO of an operating company, Block has purchased and sold real estate properties, successfully managed the issuance of an $87 million offering to finance an alternative asset investment, and structured the sale of several Student Housing properties utilizing a unique tax exempt bond structure.

As the Chief Financial Officer for Hillwood, Mr. Block focused on the financing of American Airlines Center, the sale of the Dallas Mavericks, the refinance of the Alliance industrial portfolio, and the restructure of the operating divisions of Hillwood.

Before joining Hillwood, Mr. Block was a partner with Ernst & Young, providing tax and consulting services in the Ernst & Young Kenneth Leventhal Real Estate Group. As a partner with Kenneth Leventhal & Co., he ran the tax practice in the Dallas office, was a member of the national construction industry practice, and provided real estate restructure services. He also was a consultant to the FDIC for the restructure of the Southwest Plan transactions.

About NewSource Partners LLC
NewSource Partners LLC assists management of troubled or under-performing real estate companies in developing and implementing a strategic plan that addresses both challenges and opportunities, while leveraging the core strengths of the company. Working directly with company management, NewSource Partners helps stabilize financial and operational performance by developing and implementing comprehensive debt restructuring and working capital plans. The involvement of NewSource Partners reassures creditors and investors that the company is taking important steps to address its problems and maximize its value. For more information, visit http://www.newsourcepartners.com.

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GREGORY GRAZE
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