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Real Estate Solutions

Real estate investments, from both the equity and debt perspectives, exist in an constantly changing environment of opportunities and constraints. At times, unique challenges occur that require skills beyond that of the lender or the ownership group. Our team of real estate professionals offers more than 30 years of diversified real estate experience, across a wide variety of projects and dozens of different markets.

Many of the challenges faced by real estate projects can be grouped into two general categories:

  • Project Performance
  • Capital Structure

We have the capability to assist investors and lenders in both areas. The ser­vices outlined below can apply to the launch of new projects, to corrective actions for underperforming projects, and to the build-out of mature projects.

Project Performance

Separate from questions pertaining to a project's capital structure, a project's potential economic performance is guided by its market setting, its facilities, and its operational management. The combination of these factors drives revenue production. We have the operational experience to deliver the following services in order to substantially improve project performance:

  • Market Positioning: define current market conditions and market opportunities, evaluate existing competition, and improve the project's "brand" and image in the marketplace.
  • Physical Improvements: correct existing deficiencies, meet the expectations of the "core" customer, and execute physical improvements to support revenue growth.
  • Operational Improvements: evaluate and adjust existing staffing, upgrade the project's service providers, and build relationships with key off-site play¬ers.
  • Revenue Production: evaluate and adjust the project's price point, satisfy all expense and debt obligations, maximize project profitability, and achieve ownership's timing goals regarding sell-out (or lease-up). Identify potential suitors

In addition, we have the capability to serve as "owner's representative" during construction programs in order to review and revise cost budgets, coordinate with contractors, attend construction progress meetings, and continuously ad¬vance the best interests of ownership. The goal is "on time, on budget".

Capital Structure

In parallel with issues regarding a project's performance in the marketplace, issues and challenges can reside within its capital structure. The goals of the equity and debt positions may be in conflict, or additional funding may be re-quired. We have the financial experience to balance debt obligations versus investors' required rates of return, and to provide the following services:

  • Financial Potential: quantify the extent and duration of operating losses, define the stabilized project's net income potential, and determine the level of debt that can be supported.
  • Equity-Debt Structure: evaluate the existing (or proposed) capital structure, define the expectations of the equity and debt positions, and determine the need (if any) for equity and debt to be rebalanced.
  • Asset Recapitalization: define the extent of restructuring required, generate the placement of additional equity capital into the project, and adjust debt obligations in accordance with the project's most likely performance. In addition, we have the ability to manage asset dispositions in order to generate capital.
  • Debt Repayment: structure project economics to satisfy all interest and principal payment obligations, schedule the prompt return of ownership's capital, and optimize residual cash distributions.

A specific program of services is tailored to each individual real estate project in order to achieve that client's current goals. We welcome the opportunity to be of service, and ask interested parties to direct their confidential requests and inquiries to:

Renaissance Partners, LLC 11th Floor, Federated Investors Tower
1001 Liberty Street
Pittsburgh, Pennsylvania 15222
Telephone: 1.866.266.5666