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Helped a global real estate investment firm grow its portfolio by centralizing and streamlining its servicing and asset management
•Helped an investment firm with a $2+ billion portfolio overcome inefficiencies caused by from multiple servicers
•Relieved pressure on the in-house asset management team
•Centralized and streamlined servicing and asset management
•Created consistent processes and smoothly transitioned responsibilities
•Enabled the firm to nearly double its portfolio to $3.8 billion in two years
•Expanded relationship to include special servicing and valuation advisory
•Relieved pressure on the in-house asset management team
•Centralized and streamlined servicing and asset management
•Created consistent processes and smoothly transitioned responsibilities
•Enabled the firm to nearly double its portfolio to $3.8 billion in two years
•Expanded relationship to include special servicing and valuation advisory
THE OPPORTUNITY
A leading global real estate investment firm had built a sizable commercial real estate (CRE) portfolio of approximately 40 assets, mostly complex construction loans, and representing more than $2 billion in unpaid principal balance. The portfolio was serviced by a number of the firm’s correspondent origination partners, who were not used to managing complex loan structures or the high-touch, detail-oriented servicing that the portfolio required. Not only was the firm dissatisfied with the servicing it was receiving, but leadership was also concerned that managing multiple servicers created unnecessary complexity and potential risk in the portfolio. Additionally, the firm’s in-house asset managers had taken on many servicing responsibilities in addition to their portfolio management tasks. The firm needed to elevate its approach to servicing and asset management and consolidate various partners.
OUR APPROACH
Given the complexity of the portfolio and the need for strong centralization, SitusAMC assigned a dedicated relationship manager to serve as the single point of contact. The lead quickly assembled a purpose-built team to support the client and conducted a deep analysis into the business and portfolio to understand needs and opportunities. SitusAMC prioritized the transition and centralization of the work being done by the various servicers, and created consistent processes across the servicing function to bring more rigor and surety of execution. Additionally, the team worked closely with the firm’s in-house asset managers to transition responsibilities, freeing them up to focus on growing their portfolio.
CLIENT OUTCOME
By centralizing servicing and asset management and freeing up internal resources, SitusAMC helped the client focus on higher-value tasks and grow its business. In two years, the firm expanded its portfolio almost 2x to more than $3.8 billion.
Additionally, the success of the engagement led the client to expand its partnership with SitusAMC. The firm engaged SitusAMC’s Special Servicing team to consult on a distressed asset situation, and the Valuation Advisory team to provide quarterly marks on its loan portfolio.