Underwriting an Acquisition Loan on a Complex Asset Under a Tight Deadline

A leading investment and asset management firm was looking to fund a $68 million acquisition loan in 30 days. But the asset was complex: 2 million square feet including office, industrial and 2,000 self-storage spaces. The property had eight different tenant types, including a school, and the office space was made up of shared “micro-offices” with 140 different tenants. 

The client had relied on SitusAMC since 2013 to assist with loan sizing, underwriting and securitization support. The complexity and timeline for this engagement required SitusAMC to quickly mobilize a fully integrated team. The lease abstraction team analyzed the 140 office leases and 2,000 storage units to verify income and lease terms and identify risk. The AUP team provided a forensic scrub on income to verify cash flows for the underwriting. The underwriting team built a custom model to capture the mixed-use income and generated an in-depth Asset Summary Report (ASR) that organized the data in a format that made the opportunity easy to present to the client’s credit committee and get the loan funded. 

Thanks to a strong partnership and a fast and careful approach, the transaction was successfully completed ahead of the deadline and the loan went into a securitized pool.