The Weitzman Group has a significant level of expertise in restructuring deal terms, forming new property-level strategies, and building consensus among stakeholders as an independent, third-party consultant in workout situations. We are relied upon by lenders, borrowers, and equity investors in troubled new developments or existing properties for solutions to unworkable paths forward for a property. We are engaged to collaborate with our clients toward a new capital structure or strategy for a particular asset that maximizes the likelihood of the return of capital, accrued interest, and returns. Our role is to advise our clients in avoiding property-level stagnation, disputes, stigmatization, and financial failure.
We approach our role in workout situations with care to represent our clients’ best interests, but ultimately to formulate a plan that maximizes the likelihood that our client will recuperate some or all of its investment, along with a return wherever possible. A truly failed project is usually the worst possible outcome for our clients. Our services typically include a combination of the following:
- Deal Structuring, whereby we negotiate in partnership with our clients to change the property’s capitalization while mitigating risk to our client’s position.
- SWOT Analysis to determine the current snapshot of challenges and opportunities facing the project.
- Due Diligence prior to the execution of a new agreement so that the parties involved are fully informed through our independent, outside perspective of the project’s situation.
- Marketability Analysis of the property or development to determine whether it remains marketable as planned or built.
- Financial Feasibility Analysis of the project to determine whether continuing to invest in the project makes financial sense.
- Investment Analysis of the various capital positions to determine how each will be affected under a renegotiation of the capital stack, and perhaps a reorientation of the product.
- Appraisals of the various real property components involved, as well as of the debt and equity interests therein, to determine the existing or future value basis of the project.
- Product Evaluation to identify current weaknesses in the project’s offering to the market, and work with the development team to fix the weak spot and enhance marketability.
- Marketing Consultation to enhance the overall promotional effort for the property, including our orchestration of replacing brands, vendors, and staffpersons as necessary for a fresh start.
Often, we are asked to continue consulting on the development of a troubled project after a new deal structure has been established. In these instances, we are able to supervise and provide an independent check on the development activities going forward. Our Development Advisory Services provide further ongoing risk mitigation to our client stakeholders in a new development.