Major Bank / Regional Apartment Owner / Manager
Background: A top-tier bank requested turnaround assistance with $100 million of non-performing mortgages secured by a portfolio of apartments in NYC and mid-Atlantic states owned by a distressed multi-line company. The portfolio had deteriorated physically, occupancy was not strong, and cash flow was negative - all contributing to the stress of an over-leveraged situation. In addition, the company was not well organized and had persistent organizational behavior issues. The accounting / control, information systems, administrative, property management, and marketing functions were not functioning effectively. Weak cash controls were a particular concern. Basic services / utilities were being shut-off. The number and extent of past due liabilities, including those of taxing authorities, were a major concern. Litigation was common. Complicating matters, many of the properties were not single purpose entities, but were organized into small operating companies with staffing.
Scope: As consultant with a national turnaround consulting firm, worked-out the situation: