Property Manager found deficient Letter of Credit documentation for a new property management assignment. Previous owner/manager's tracking system allowed expiration of large letter of credit. Item missed during due diligence. Eventual tenant default cost the building $3 million.
Tracking Letters of Credit added to lease administration process now being performed in ELLIPSIS as a safeguard against this type of oversight. All Letters of Credit expiration dates are now known for each tenant. Critical date reports highlighting such dates are received by onsite Property Manager via Lease Administration Agreement.