CBI
Capital Strategies
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Service Agreement
CBI Capital Strategies Goal
CBI Capital Strategies seeks to help commercial property owners who are currently in distress due to the changing economic environment. We will evaluate your property, commercial loan and business plan to provide objective advice on realistic potential courses of action.
Potential Outcomes
As press reports have touted, the current credit climate is dramatically changing and many experts project continued erosion in commercial real estate values. Financial institutions are now looking for stronger balance sheet & liquidity positions from their borrowers, a more robust track record of success with a given business plan, and, even under the most favorable conditions, the leverage available to borrowers has decreased dramatically. Complicating this already complex problem further many lenders face financial uncertainty themselves, which limits their ability and incentive to negotiate with borrowers. This means for some owners their best course of action will be the relinquishment of their property in a way that best mitigates their personal liability.
CBI Capital Strategies may be able to help some borrowers renegotiate their loan terms; refinance their current position; advise in the repositioning, re-lease or sale of their property; or provide guidance through a foreclosure or deed in lieu of foreclosure action. CBI Capital Strategies does not provide legal advice, and encourages clients to secure legal council for any legal matters that may arise. We do provide proven, seasoned perspective on your property and the likely negotiating position of your lender.
Prequalification Interview
After an initial prequalification interview, one of three courses of action will be undertaken. One, property owners in the direst circumstances may be encouraged to engage bankruptcy council, and no engagement will be proposed. Two, a determination will be made that further investigation is warranted and an engagement will be proposed, which will result in business recommendations for likely productive courses of action. Third, in a small percentage of cases where the clear cut best course of action is a sale, CBI Capital Strategies will offer to bring in a related investment entity to purchase the property.
In every instance CBI Capital Strategies will strive to promote their client’s best interest.
Engagement Fees
CBI Capital Strategies bills for our time at $300 per hour, with an initial retainer for the first 10 hours required upon execution of an engagement agreement. Should CBI Capital Strategies negotiate a favorable alteration in a property’s loan terms an additional Success Fee equaling a minimum of $10,000 or 5-10% of the amount of the savings will also be due.
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