Loan Maturity Solutions for Tenant-in-Common Investors
Additional Information
An estimated $193 Billion Commercial Mortgage Backed Securities (CMBS) loans will mature, in the United States, from 2016-2018. Many of these 10-year, highly leveraged loans were for properties acquired by tenant-in-common investors. Several of these properties are of Class-A caliber and economically burdened due to underperformance and mismanagement by the original sponsor. Thousands of tenant-in-common co-owners have found themselves in a situation where they are facing a pending loan maturity with very few options and without expert guidance in generating a positive outcome.
NCAM Has Helped Hundreds of Tenant-in-Common Investors Facing a Loan Maturity
NCAM proposed and executed a financing strategy for investors at Town East in Mesquite, Texas,
that enabled the tenant-in-common co-ownership structure to remain intact.
The NCAM executive team has a wealth of experience with tenant-in-common properties. We possess a unique level of expertise and are equipped with a vast number of expert legal and financial resources to help property ownership that is facing a loan maturity, chart a new course to a successful outcome.
NCAM has had proven success in helping over 37 different groups and hundreds of investors in all types of commercial properties across the country. We have first-hand experience in helping tenant-in-common investors overcome the adversities of an economically burdened property while facing a loan maturity and delivering the best possible outcome.
Because of NCAM’ uniquely vast experience and extensive network of legal and capital resources, we have successfully delivered new capital sources for property refinancing, while retaining the tenant-in-common ownership, with all its inherent tax advantages, for the company’s investor clients.
The executive management team closely and objectively examines the variety of factors that can vary greatly at different properties and objectively present as many viable loan maturity solutions as possible.
Factors include:
- Date of the impending loan maturity
- The property's physical and financial condition
- Current and projected market demographic and economic factors
- Overall financial health of the property’s investor group
Our goal is to deliver as many potential exit strategies as is possible for each asset. Then it is up to the TIC investors to select the option that best meets their goals and objectives. It is our experience that to only deliver one potential course of action does not give our clients the opportunities that the market can and does present. Sometimes sale is the best exit, and other times it may be refinance. Ultimately, the decision is for the TICs to make, not NCAM. It is their investment and hard earned dollars at risk and we respect that. We pride ourselves on the results we continue to deliver for our clients