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Commercial Real Estate Underwriting and Consulting
Experience/Excellence/Exceder

Portfolio Acquisition Case Study

Client:

Investment Bank

Project:

310 loans with an outstanding balance of $440 million; mix of performing and non-performing bank loans; collateral included churches, land, residential lots, industrial, multi-family, motels, commercial and retail uses; average loan size $1.4 million.

Deliverable/Timing:

Client to submit a Best and Final bid for the entire pool within 15 days.

▪Exceder Scope of Work:

  • Identified a sample set of 98 loans that covered 90% of the outstanding balance. Sample set included 92% of the NPL balance and 56% of the performing loan balance. Sample also reflected property type and geographic concentrations.
  • Created an inventory of the sample set loan files for critical documents and correspondence.
  • Confirmed loan business terms with loan documents.
  • Reviewed and analyzed all available property level and Borrower/Guarantor documents.
  • Assembled market reports and current sale and lease comparable data from various subscription databases.
  • Completed market calls to brokers for the top 25 loans in the pool.
  • Underwrote As Is, Stabilized and Mark to Market pro-forma cash flows as necessary.
  • Concluded to an underwritten LTV and DSCR based on cash flow, market data and loan terms.
  • Projected loan resolution (Maturity Payoff, DPO, Deed in lieu, foreclosure), estimated date of resolution and range of potential loss.
  • Sample set conclusions presented to client on a rolling basis starting Day 5.
  • Sample set underwriting and analysis completed Day 10.
  • Applied results of Sample Set underwriting to portfolio.

Entire project completed in 12 days.