reci, real estate counselors international inc

Success Stories

building

Forensic Due Diligence Analysis

Location: Suburb of Midwestern Metro Area

Client Needs:
In 2010, we were engaged by the real estate work out group of one of the 10 largest U.S. banks to assist in development of a strategy to preserve its investment in a lifestyle shopping center, whose ownership had filed for Chapter 11 bankruptcy protection one day before the lender was to file a foreclosure lawsuit.

Why RECI:
RECI was engaged because of the experience of its principals and senior staff in analyzing and valuing retail properties of all types, nationally. In fact, RECIís principals have performed acquisition due diligence and valuations on a large number lifestyle shopping centers and maintains an in -depth understanding of the market and tenancy dynamics of such assets.

Solution:
The engagement featured abstracting leases, interviewing tenants, analyzing customer traffic and circulation trends, analyzing historical sales performance, assessing recent leasing strategies, reviewing the centerís position in the market and forecasting cash flows. As a result of our research and analysis, the bank was able to establish a firm position with the borrower and negotiate a settlement that included dropping the bankruptcy petition. Ultimately, a bank holding company acquired the property and was able to preserve its investment in the shopping center.