3 Critical Considerations When Navigating Distressed Assets

As the number of commercial real estate assets in distress or default increases, sophisticated lenders and investors should consider ways to optimize financial outcomes, according to a new SitusAMC white paper, “Navigating Rough Seas with Special Servicing: What Lenders & Investors Must Consider When Dealing with a Default.” 

The white paper explores three key factors that can make a significant difference: weighing strategies beyond foreclosure to maximize the economic recovery on the asset; looking for a special servicing partner with cycle-experienced professionals and a collaborative culture; and transparent communication and relationship-building to help align stakeholder interests. 

“Navigating defaults can be a deeply stressful process for all counterparties, with major implications for their firms,” said Curt Spaugh, SitusAMC Head of Special Servicing. “Lenders and investors should look for a partner with deep experience in real estate cycles, and a culture where innovative resolution strategies are openly shared and evaluated. We view it as our responsibility to come to our clients with options and a point of view to guide them toward achieving the optimal outcome.” 

SitusAMC is the named special servicer on more than $123 billion UPB, representing 316 securitizations and 2,703 loans, as of December 2023. SitusAMC helped resolve $21 billion in aggregate UPB in 2023. To learn more, download the white paper, “Navigating Rough Seas with Special Servicing: What Lenders & Investors Must Consider When Dealing with a Default,” here. 

SitusAMC’s Special Servicing solutions provides our clients with a white-glove approach by offering a need-driven, collaborative, and responsible engagement model. We dedicate a highly responsive single point of contact, helping streamline client engagement and reduce operational risk. For more information, contact Curt Spaugh, Senior Director, Special Servicing at curtspaugh@situsamc.com.