Cohen Financial is well positioned to advise and support the real estate capital markets through our extensive commercial real estate experience in lending across all capital sources and property types, servicing distressed loans, providing portfolio diligence, property valuations, and loan portfolio loss projections. Prudent diligence is critical today in understanding the risk embedded in real estate assets and loan underwriting.
Community Bank Diligence and Stress Testing
Cohen Financial understands the importance of taking a granular approach in determining potential probable losses within a financial institution's loan portfolio and providing stress testing. We have designed an approach based on years of management experience in evaluating credit and loan portfolios as part of bank merger and acquisition activity. Our expertise in evaluating commercial real estate is complemented by our strength in structuring loans and underwriting obligors which serves as a framework for establishing Loss Given Default (LGD) and Probable Default (PD) across the respective loan portfolios.
Loan Pool Acquisition Valuation / Diligence
As a Standard & Poors Rated Above Average Special Servicer, Cohen Financial has worked with multiple distressed debt pool buyers in resolving FDIC assets. Our professionals have evaluated more than $10 billion in distressed debt pools for equity investors. We use our proprietary models, diligence capabilities, knowledge of leading investor expectations, and resolution histories to deliver indicative loan pool pricing.
Third-Party Loan Underwriting Services
Cohen Financial combines our in-depth knowledge of the capital markets with our understanding of commercial real estate and a thorough due diligence process to provide top of class commercial real estate loan underwriting services. Our team has provided loan underwriting platform support for private equity funds and CMBS lenders.
As part of the process, Cohen Financial will:
- Reconcile operating statements
- Analyze reimbursements
- Underwrite property cash flows
- Abstract tenant leases
- Evaluate sponsor credit
- Review third-party reports
- Research market data
- Inspect the property
When our analysis is complete, we will deliver the findings in a memorandum suitable for your investment or credit committee.
Portfolio Diligence Services
The capital markets are overwhelmed with real estate investors seeking debt and equity financing to acquire new commercial real estate investments. It is critical that these investors have formulated a well thought out proposal backed by deep due diligence focusing on cash flow underwriting, property valuations, and sensitivity analysis. Cohen Financial has advised and partnered with these capital providers to understand the focal points that result in execution.
Warehouse lenders are challenged today in understanding the advance rates to apply to individual real estate loans and portfolios in lending to funds. Cohen Financial's expertise in valuing loan pools for investors and underwriting loans is used to provide a comprehensive product.