OUR ACHIEVEMENTS

Over the course of 80 years we have been faced with many interesting professional challenges. We think showing you how we successfully handled situations for some of our clients says a great deal about how we can handle yours.

1. Situation:
Landlord agreed to fund a cash contribution for renovation work that a 35,000 sq.ft. customer required as part of the lease negotiation. The customer wished to have total control over the work but not realize the tax ramifications that this funding would represent.

Our Thinking:
We structured the transaction so that the landlord would pay the contractor directly. This would permit our customer to supervise the renovation without any negative tax consequences while allowing the landlord to receive a 39-year old depreciation benefit. All needs were satisfied.

2. Situation:
Interest rates had dropped and a new client wished to refinance his property loan. But, he was facing 40% vacancy as leases scheduled by his previous manager were all expiring at the same time and tenants were not renewing.

Our Thinking:
We knew that a lending institution would reject his loan application because his vacancy factor would be too high. We developed a leasing strategy and aggressively marketed the property. Six months later we had raised occupancy to 90% while maintaining the integrity of the rent role. The owner met the lending requirement and got the loan.

3. Situation:
At the commencement of a new management assignment, a short-fall of funds was discovered in the mortgage escrow account. The bank demanded an immediate mortgage escrow payment. The owners told us to pay it.

Our Thinking:
Experience has taught us to question. We found it odd for this building to be in arrears. We fine-tooth combed the financials and found a $112,000 mistake. The previous manager had deposited the monies, but the bank had not credited it properly. It had been almost a year, and no one, including the building accountant had caught this error and maybe never would have.

4. Situation:
We were retained by a national retailer to dispose of its lease obligation for a prime Manhattan location. However, landlord refused our client's offer of a 1 million-dollar buy-out payment. The lease had 10 more years to go.

Our Thinking:
React quickly. We located a credit worthy subtenant and structured the deal to the advantage of all three parties -- landlord, tenant and subtenant. We arranged for the existing tenant to pay $350,000 toward renovation of the premises and had the subtenant guarantee its performance with the overtenant. Overtenant avoided costly future rental payments while subtenant gained access to a prime retail location for which landlord continues to receive a market rent. Turnaround time was less than four months.

5. Situation:
A national insurance company retained us to manage and lease a mixed-use property containing both residential and commercial tenants. The property had been acquired in foreclosure.

Our Thinking:
Despite the fees generated from this management and leasing assignment, our in-depth analysis and evaluation indicated that the location, tenancy and building itself were not of suitable quality to justify retention of this asset in their portfolio. The income stream was insufficient to enhance the company's bottom line. We advised them to sell. They did.