Real estate developer The Alter Group has formed a new affiliate, Alter Asset Recovery, to provide expedited solutions for lenders and special servicers holding distressed commercial properties.
The new firm is led by industry veterans James I. Clark III, managing principal of EnTrust Realty Advisors and the former president of the Investment Services Group at Transwestern; Samuel F. Gould, president of Alter Asset Management; and Ronald M. Clarkson, president of Alter Construction Management.
Alter Asset Recovery says it will lead lenders through the financial, operational, asset management and reporting steps involved in acquiring and disposing of distressed properties.
‘As a developer and owner, we're able to evaluate distress from an operational and underwriting perspective to extract its underlying value,’ says Alter Group's president, Michael J. Alter. The new affiliate will focus on institutional-caliber office, industrial, medical, mixed-use and corporate real estate assets.
The company's services include cost/benefit analysis of loan modification options, implementation of an asset recovery plan for a foreclosure or deed-in-lieu, analysis of operational efficiency and required property capital investments, establishment of tenant relationships and the repositioning assets for recovery and subsequent sale.
‘This is a critical year for banks, thrifts and special servicers,’ says Clark, who will serve as managing principal for the group. ‘The [Federal Deposit Insurance Corp.] has absorbed $30 billion in debt from failed banks. Some $40 billion in [commercial mortgage-backed security] loans arrive in 2010, straining special servicers to sell assets. Distressed commercial assets can make or break balance sheets this year.’
SOURCE: The Alter Group