Breakwater Equity Partners Passes $2.5 Billion in CRE Loan Volume

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Commercial workout firm continues to grow.

“As both the US and global economy continue to really struggle and wreak havoc on the commercial real estate market, we remain enthusiastic about helping property owners and investors save their troubled investments."

Today Breakwater Equity Partners, a consulting firm specializing in commercial loan workouts, announced that the firm has been engaged on over $2.5 billion in total loan volume. The now 30-person firm, located in San Diego, CA, has been doubling its staff every year to respond to the growing demand for commercial loan modifications.

“Breakwater is extremely well positioned to help property owners of commercial real estate successfully workout their distressed situations,” said Phil Jemmett, CEO of Breakwater Equity Partners. “As both the US and global economy continue to really struggle and wreak havoc on the commercial real estate market, we remain enthusiastic about helping property owners and investors save their troubled investments. All of our clients are dealing with a high level of financial and emotional pain, as the real estate crisis has destroyed years of hard work and created an uncertain future.”

Breakwater attributes its fast growth and success to the hands-on experience of its team, with over 200 workout assignments completed or in progress. The firm employs a unique, multidisciplinary approach with highly experienced teams in finance, bankruptcy, banking, real estate law, litigation management and negotiation.

Breakwater has performed a wide variety of commercial loan workouts, but specializes in high-profile properties with Tenancy-In-Common (TIC) ownership structures. The firm has worked on almost every real estate asset class all across the U.S. including office, industrial, retail, from strip centers to large shopping malls, multi-family residential, mixed use, master-planned communities, broken construction projects, residential and land development, golf courses, and manufacturing facilities.

Recently, Breakwater was able to work out a 50% discounted payoff on a loan secured by a nine-story office building in Clearwater, Florida. The TIC owners had invested over $10 million in the property, but the property had declined in value by more than 50% as vacancy skyrocketed. Breakwater successfully negotiated a new agreement with the reluctant special servicer, and the owners were able to avoid foreclosure, capital gains taxes, and a complete loss of their original investment. Ultimately, the property was sold to a related party at a discounted price, and the owners now have a property, loan, and financial situation that all make economic sense.

Unfortunately myriad economic forces are catapulting many commercial real estate owners into the same vulnerable position. “There are approximately $1.7 trillion of commercial real estate loans coming due for refinancing by 2016, and the vast majority of those properties are not able to be refinanced for one reason or another,” said Armand Nicholi, BreakwaterCFO. “Falling property values and rental rates combined with increasing vacancies and intractable, overwhelmed lenders leave many CRE owners facing default or even worse, foreclosure. This is where Breakwater’s breadth of expertise can step in, stop the downward spiral and save these owners from losing their investment.”

About Breakwater Equity Partners
Breakwater Equity Partners is a San Diego, CA based commercial real estate workout consultancy and investment firm. Through Breakwater’s extensive experience on over 200 engagements with loan values in excess of a $2.5B, the firm has devised a totally unique, multidisciplinary approach to uncovering and resolving distressed asset situations. Breakwater’s professional team combines legal, financial, economic, banking, and real estate expertise to devise customized strategies for each unique case regardless of market (gateways to tertiary), asset class (single and multi-family, office, flex, multi tenant land, time shares, development, power centers) or loan type (portfolio or CMBS). Please visit our website at http://www.breakwaterequity.com to review case studies on representative deals.
Breakwater Equity Partners, please call 858-490-3630 or visit http://www.breakwaterequity.com.

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Danielle Gruden
Elle Communications
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