Debt Advisory

Cohen Financial offers a variety of advisory services to real estate owners regarding their commercial mortgage loans.

Many property owners and their lenders are finding it increasingly difficult to come to an equitable resolution for a troubled loan. The issues facing borrowers today are numerous—but the one constant is the difficulty in working through the lender’s approval maze, particularly for their CMBS loans, usually resulting in a frustrating experience with poor results.

In any transaction requiring a modification of the existing loan terms, there may only be limited opportunities to successfully interact with the lender. Many lenders are either overwhelmed in this environment with loan requests or they are restricted in their abilities to provide relief to borrowers due to regulatory constraints or the structure of the securities the loan may have been placed within. Some may simply be incapable of making a rational decision due to internal organizational issues.

A well supported and professional analysis of the options facing the borrower and the property focuses the lender on workable resolutions for both parties. Unprepared and impulsive communications with the lender typically yield a poor result that wastes time and opportunity, whether through a misunderstanding of intentions or establishing inextricable positions on both sides.

Cohen Financial is prepared to execute the necessary analysis for your situation. Our experience in lending across all capital sources and property types, loan servicing and work-outs, loan and property valuations and mortgage banking enables us to use the most effective tools when working with your lender.

Our process starts with a review of your situation and includes:

  • Evaluating property debt capacity, default prospects and assessing property cash flow
  • Providing sale/refinance scenarios and alternative financing options
  • Developing loan work-out plans
  • Preparing an indicative value based upon the net present value of the asset
  • Calculating a net present value of the loan as held by the lender
  • Analyzing the economic impact to the lender under multiple scenarios (i.e., forbearance, deed-in-lieu, foreclosure, debt relief, refinancing, discounted pay-off)
  • Preparing a presentation with documentation and leading the discussion with the lender

Cohen Financial’s Debt Advisory Services will provide you with the solutions to today’s pressing loan challenges. Not only will you receive professional service in dealing with your current debt issues, you will be able to access the full spectrum of capital markets solutions through Cohen Financial and our affiliated companies.