A Borrower’s Consulting Firm, Specializing in Approvals and Workouts, Including
• CMBS
• Balance Sheet (Non-CMBS) Senior Loans
• Mezzanine and Other Subordinate Debt
• Other Loan Type Approvals and Workouts
Workouts
Special Servicing Solutions will assist our clients if their CMBS and/or other loans are transferred to the lender’ special servicer, including because
- Our clients are having difficulties meeting debt service
- The special servicer claims our clients are in monetary or non-monetary default or claim such default is imminent, including claims related to
- - Cash management issues
- - Failures to have obtained requisite loan document consents
- - Non-compliance with loan document financial reporting requirements
- - Failures to follow special purpose entity loan document requirements
- - Improper transfers
- - Borrower, collateral, loan and/or guarantor level metrics, such as DSCR, Debt Yield, Net Worth, Liquidity, etc., have fallen below certain loan document required thresholds
- Our client’s loans have matured and the clients are unable to timely pay off the loans
- The special servicer has claimed loan document defaults have triggered carve-out guarantor liability
Often, there is a complete breakdown in communications between the special servicer, on the one hand, and borrowers and, if applicable, guarantors, on the other hand. Once engaged, Special Servicing Solutions will promptly re-engage with the special servicer and conduct meaningful, direct and responsive communications and negotiations. Among other things, extraordinary default interest may be accruing from the earliest claimed default and it is critical to proactively seek a resolution, as soon as possible, in an effort to diminish the accrual of extraordinary amounts. Special Servicing Solutions will help its clients in pursuing their objectives in a more timely, cost saving and beneficial manner.
Special Servicing Solutions will assist with developing client centric strategies, designed to meet clients’ objectives, while consulting with clients about possible special servicer and other lender requirements, including possible loan restructure solutions.
CMBS and Other Transactions Requiring Lender Approvals
Many CMBS and other types of loans (including mezzanine and other subordinate debt) require that Special Servicing Solutions and clients seek lender approvals of various types of transactions.
The process for obtaining those approvals can, just like the underlying loan documents, be extremely complicated and demand that borrowers timely, promptly and properly comply with also complicated approval/special servicer requirements, each step of the way. Moreover, time is of the essence, in connection with our clients' needs to obtain those approvals.
Special Servicing Solutions collaborates with our clients in developing strategies intended to meet their objectives and negotiates with special servicers and other lender representatives in an effort to achieve the best possible solutions, as expeditiously as possible. Special Servicing Solutions will assist our clients with, among other things, seeking CMBS special servicer or other lender representative approvals for the following
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- Assumptions
- Equity transfers
- Release of escrowed funds
- Property manager replacements
- Modification of loan documents
- Franchise changes
- Due-on-sale waivers
- Due-on-encumbrance waivers and approvals for the incurrence of debt
- Collateral releases, substitutions or additions
- Leases
– New major tenant leases
– Amendments to existing major tenant leases - Releases of Borrowers and/or Guarantors
- Borrowers and/or Guarantors change of ownership
Experience
When seeking approvals from special servicers or other lender representatives and/or workout solutions for a defaulted, troubled or matured loan, our clients will have a team working for them that has substantial experience closing commercial real estate transactions and loans. Because of that experience, Special Servicing Solutions not only understands the practical, day-to-day and long range business needs and objectives of our clients, but, also understands the needs and requirements of clients' lenders, which significantly facilitates expeditious resolutions for our clients.
About
Scott Kramer, Special Servicing Solutions’ Founder, President and CEO, has over 30 years of commercial real estate experience. Mr. Kramer served as Director of Operations for Rialto Capital Advisor’s Loan Servicing platform and one of its Asset Management divisions. Mr. Kramer oversaw the day-to-day operations of both, which involved the servicing and asset management of billions of dollars of distressed and performing loan vehicles, including billions of dollars in assets owned by Rialto. Mr. Kramer started and ran its nationally rated commercial loan asset management division, including developing processes and strategies for the negotiation and closing of modifications, forbearance agreements, assumptions, and discounted payoffs and was responsible for seeking Rialto’s approvals for such transactions. Those transactions involved resolving, among other things, loans with multiple monetary and non-monetary defaults, borrower relationships and pieces of collateral, where claims for recourse liability were often asserted against the guarantors. Mr. Kramer was also responsible for developing its floating rate, mezzanine and B-Note loan servicing platforms.
Prior to that, Mr. Kramer served as President of The Kramer Companies, a real estate and business investment and consultant firm. In that role, Mr. Kramer led a cross-functional team in all aspects of budget preparation, property valuation models, financing options and pre-construction pricing for retail, office and other commercial projects.
Before that, Mr. Kramer served as Chief Executive Officer of a commercial real estate development company, where he was responsible for the development of multi-million dollar commercial mixed-use projects, including the development of an approximately $100 million, 600,000 square foot public/private, transit-oriented office building project, leased exclusively to Miami-Dade County, Florida.
Prior to that, Mr. Kramer was a real estate/corporate attorney, where he represented investors, managers, lenders, and developers in the acquisition, finance, leasing, development, management and sale of myriad commercial real estate projects, as well as owners and investors of various types of businesses.
Contact
Special Servicing Solutions Founder, President and CEO has dedicated his career to being extremely responsive and proactive, with regard to communications with all his clients and the handling of their matters, on their behalf.
Real Time Collaboration/Fluidity
Special Servicing Solutions will regularly collaborate and communicate with our clients and be prepared to be adaptable and fluid throughout the approval and/or workout process, to ensure
- Clients' real-time familiarity with the status and progress of their matters
- Transactions are expeditiously proceeding, without delay, toward conclusion and resolution, in accordance with our clients’ then existing expectations, strategies, and goals, as they may need to change, from time to time
- Clients are always making informed decision
Special Servicing Solutions' team is extremely adaptable and understands the importance of fluidity, in handling client matters, especially taking into account the clients' need to constantly adapt to changing collateral and/or market conditions, special servicing requirements, and other related matters.