Recapitalization with private sources of capital can save many ‘underwater’ commercial real estate properties from bankruptcy.
Scottsdale, AZ (PRWEB) March 02, 2011
“Recapitalization with private sources of capital can save many ‘underwater’ commercial real estate properties from bankruptcy as thousands of these loans mature for properties valued at less than the original debt,” according to Andy Bogdanoff.
Bogdanoff is chairman of Remington Capital, an international financial services company that specializes in securing financing for commercial loan brokers with clients unable to obtain capital on their own.
“With property values down as much as 45% since 2007 and bank liquidity an on-going issue, thousands of commercial real estate owners and developers may not qualify for refinancing when their loans mature between now and 2013. As a result, they may have to sell their property at a loss or face bankruptcy,” Bogdanoff said. “There is a third option available,” Bogdanoff said. “It’s called DPR for Distressed Property Recapitalization.” Introduced by Remington, DPR is a new type of investor-driven program aimed directly at distressed owners and developers, bypassing traditional banking sources.
“For those unable to refinance their loans, DPR allows us to help recapitalize their property with a new equity partner and new debt. We do this by combining Remington’s expert capital advisory services with our extraordinary access to hundreds of active private funding sources eager to recapitalize troubled assets.”
Bogdanoff said DPR can be a win-win opportunity for those who choose recapitalization. “DPR gives owners a chance to stay in the game and ride out the market until it turns around for them. Investors win when there is intrinsic value in the real estate being recapitalized.”
Of the more than 700 lenders and investors in Remington’s global network, about 500 are alternative capital sources with billions of dollars available to recapitalize distressed properties that have intrinsic commercial real estate value. Included are private equity funds, institutional and individual investors, certain corporations, and others.
Over the years, Remington has helped finance, refinance and recapitalize more than $5 billion across the capital stack for all types of commercial real estate and business financing projects.
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