Providing borrowers with an advocacy consulting platform to resolve troubled debt

Sequoia Equity Partners recognized through its founders’ own endeavors in the distressed debt markets that borrowers were not being provided the sound advice from their advisors. As a result, many borrowers have lost their assets to lenders and servicers, as well as their equity invested in their properties.

It was this revelation that inspired the firm to provide a borrower advocacy consulting platform that provides the borrower with a viable strategy to restructure their debt on the asset and the financial resources to execute the plan.

When a borrower endeavors a loan restructure with a CMBS special servicer, they are often caught off-guard that new capital is required by the servicer to execute the new terms set forth in the restructure. While the amount can vary from one property to the next, and the specific servicing group also influences this amount, the rule of thumb is approximately ten-percent of the unpaid balance of the loan is usually a representative of new capital required. So if your commercial real estate loan is $20 million you will likely need $2 million (give or take) to execute the new term sheet with your special servicer. Most borrowers do not have the amount needed in reserves at the property, nor liquid where they can gain access to these funds. This is where Sequoia Equity Partners will provide the required capital needed to perform under the new terms your loan restructure agreement.

Each client engagement starts with a Client Diligence Report that takes a comprehensive look at the property, market, capital stack and lender vantage. Each report will expand on the following topics, while providing potential solutions that our client can act on to achieve a resolution to their challenged loan.

  1. Asset & Structural Analysis
  2. Financial Analysis
  3. Lender/Servicer Analysis
  4. Market Survey
  5. Lease Abstracts & Tenant Analysis
  6. Lease Negotiations
  7. Legal Considerations
  8. Tax Considerations

Our clients often want us to shepherd them through the entire process to ensure continuity.

Our firm works on a fee-basis.  This ensures that you are not paying for our consulting on an hourly, or retainer, basis.  The lion-share of any fees earned are tied to performance metrics.  This means you are not throwing good money after bad.  So many clients seem to call us today for a complimentary consultation to see if Sequoia Equity Partners is a fit for your needs.

Providing potential solutions in achieving resolution to challenged loans