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Situation

A top private equity fund needed due-diligence services on a cross section of a large FDIC pool. The fund was bidding to be a participant in a FDIC structured sale.

The portfolio consisted of both performing and non-performing loans spread across all asset classes and all parts of the nation. The client needed due-diligence on approximately 150 of the loans, originated by mostly small to medium-sized banks.

Solution

With limited information, Realogic:

  • Performed site inspections on 60 of the 150 properties
  • Reviewed all of the contents of the loan files to determine:
    • default status
    • DPO probability and amount
    • cross collateralization with other properties
    • environmental issues
    • correspondence related to loan negotiations and foreclosure
    • title issues
  • Reviewed rent rolls and historic financial information
  • Gathered market reconnaissance to determine property occupancy and current asking rent
  • Compiled market data such as market rent, occupancy and data on absorption & new supply
  • Generated in-place and stabilized values for each property, based on our findings above
  • Delivered an asset summary and site inspection package on each asset that included cash flows, maps, photos and all market data

Quote

"Our work product enabled our client to put together their best and final offer for the portfolio, and the quality of our data allowed them to apply macro level assumptions to smaller assets enabling our client to save time and due-diligence dollars.”
Project Lead