Distressed Property Turn-around
Turnaround Management Services
After providing turnaround solutions for underperforming assets for more than 20 years, The Maher Company understands that the financial emergency created by a distressed property requires a rapid response.
The breadth of our experience includes condominiums, condo hotels, apartments, retirement communities and other mixed-use developments. We know that these properties become distressed when plans employed by management and sales are poorly implemented, are off target, or fail to include provisions for reacting in a timely fashion to unforeseen market conditions.
To maximize recovery for the client, TMC has developed a streamlined process, working with our strategic partners, to address difficult choices and solve major problems in order to bring a property back on the market in a stronger position as quickly as possible.
Our prioritized turnaround process begins by asserting control to halt, and then begin to reverse negative financial trends. A situation analysis proceeds concurrently, identifying the client’s needs and goals while detailing the problems and opportunities inherent in the asset. From there, we develop a Strategic Turnaround Plan outlining the management and marketing options available for recovery. Once an approach is agreed upon with the client, our team of experts sets out to quickly achieve the goal.
TMC Turnaround Management Services include:
- Proactive Marketing
- Asset Management and Control
- Situation Analysis
- Systematic Cost Control
- Contractor Assistance
- Disciplined Reporting
- Default Advisory
- Liquidation Oversight
TMC is a pioneer in bringing consumer-marketing strategies to real estate. We identify a need in the marketplace; conduct detailed research to profile the consumer; design the product to substantiate value, and create a compelling story to engage the prospect to buy.
So often, those who market real estate simply employ local listing services and overpopulated web sites, then wait for the phone to ring. Often, changing brokers gets the same disappointing results. TMC responds with urgency, creating innovative approaches and strategies that result in the rapid absorption of product.
Asset Management and Control
Every day a distressed property costs money and lowers recovery potential. TMC takes control of the situation to cut costs, identify opportunities and create efficiencies while long term planning takes shape.
Immediate action includes:
- Securing and accounting for all funds
- Opening new accounts and transferring licenses
- Inspecting property and inventory
- Revitalizing business protocols
Within 30 days or less, a comprehensive evaluation is issued that includes vital statistics and photographs. This information provides all decision-makers with a clear understanding of the asset and its business.
Once we bring the asset under control, we conduct a detailed analysis of the property and its market, as well as a financial review of the asset and its businesses. This research provides a background to make intelligent decisions regarding:
- Maintaining operations
- Closing the location
- Making capital improvements
- A timeline for marketing for sale, based on the potential for losses and devaluation
Systematic Cost Control
TMC’s financial program is based on accurate income reports and tightly controlled expenses. We quickly identify problem areas and immediately bring costs under control.
From addressing the neglect of deferred maintenance to advising the approach to a multi-million dollar renovation, our goal is to achieve maximum return on each dollar spent. We advise and recommend with the goal to optimize the property’s competitive position in the marketplace and achieve results on time and on budget.
TMC provides comprehensive financial reports on a monthly basis, accompanied by a narrative update on each property. Our management team is personally available to conduct reviews and answer questions
More asset managers are faced with hard decisions as condo conversion defaults increase. TMC has a wealth of experience to share and solutions to recommend when a borrowers get into trouble. Whether the ultimate decision is to continue funding, appoint a receiver sell the note, or repurpose the asset, TMC can offer valuable insight to help lenders make informed, intelligent decisions.
If in the event the cost/benefit analysis leads to liquidation, TMC works with lenders and courts to ensure the property is secure and maintained until disposal.