Condominium Turnaround Specialists

A flooded market and tightening credit have increased condominium conversion loan defaults and the problems they cause. TCM can help implement a variety of recovery options when construction projects in progress run into financial trouble.

1. Continue to fund the project, with payment concessions. With an eye toward the long term, this option is viable with the protection of a forbearance agreement that upholds the lender’s right to take control of the project if the terms of the forbearance are breached.
2. Appoint a monitor or limited receiver
   When the borrower has incentives such as maintaining professional standing to complete the project, a monitor or limited receiver can manage finances and confirm that the work is completed in a timely, professional manner.
3. Remove control from the borrower
   Appointing a receiver prior to foreclosure will limit losses. The receiver can complete the project, liaison with the Homeowners Association, maintain the property, rent units to offset carrying cost, and if appropriate, market and sell the units.
4. Sell the note
   For complex loans, marketability can be enhanced by appointing a receiver to provide updated information and access to the property during the process.
5. Re-convert the purpose.
   With limited sales in an apartment or hotel conversion, re-converting the asset to its original use may result in the best result in certain markets.

A single source for results

Developers with distressed projects often have shielded other assets in anticipation of such an eventuality. When the recovery of deficiency judgement is unlikely, The Maher Company, working with our strategic partners, will deliver receivership trustee, management marketing and disposition services through a single point of contact, allowing us to orchestrate the highest possible recovery in the shortest period of time.