Syntaxgroup Provides Expert Witness Consultancy on Special Loan Servicing and Corporate Real Estate
Select Case Studies
Bank of America
Brea, CA
650,000 SF Bank Data Center (OREO)
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Challenges:
650,000 SF former bank data center that was functionally obsolete.
Actions:
Devised a structured financing plan that included vacating several back office leases throughout California and stabilizing the subject property's operating performance, facilitating a bondable lease structure
Results:
$30M+ net reserve recovery and capital gain
Cisco Systems
San Jose, CA
Approximately 6M SF of R&D, office, and Mfg
Challenges:
Unprecedented growth required "just-on-time" research and development, along with manufacturing space, which led to a significant over improvement and land. purchase.
Actions:
Assisted with a supply/demand and commute shed analysis to determine ideal ownership/leased position.
Results:
By creating an alternative more cost effective CRE solution(s), resulted in disposing of significant CRE liabilities that would have resulted in approximately several hundred million in operating and capital costs.
Gateway Computers
Irvine, CA
Approximately 2M SF national retail, office, and Industrial Portfolio
Challenges:
Paradigm shift from a "bricks and mortar" retail sales medium to an on-line and wholesale distribution model. Consequently, several million feet of retail and corporate real estate space was no longer required and caused a significant on-balance sheet liability.
Actions:
Oversaw and created national underwriting, valuation, and disposition plan for entire "held-for-sale" CRE portfolio.
Results:
Within just 24 months, reduced the on-balane sheet net loss reserves from over $190M to less than $30M.
Litigation Support
Wrongful Eviction OREO
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Litigation support on wrongful eviction case. Tenant sued Hotel Operator, manager of the Bank's OREO, for wrongful eviction. Case settled in arbitration with significant reduction in settlement costs.
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Non-Disclosure Dispute (i.e. tenant credit and its effect on property value) OREO
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Plaintiff sued Bank for non-disclosure of tenant who defaulted after close of escrow. Provided support as Bank officer in mediation. Lawsuit alleged significant damages and diminution of value. Settled case at a fraction of initial claim.
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Environmental Contamination OREO
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Assisted litigator and Plaintiff as lead expert officer for the Bank for significant damages caused by hydrocarbons in the soil. Assisted with property valuation and environmental review. Case settled out of court and defendant was required to pay for remediation.
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Disclosure Dispute OREO
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Plaintiff (investor of OREO), claimed detrimental reliance and damages from incorrect disclosure. Provided litigation support on behalf of Defendant (i.e. Bank) and defense lawyer. Completed valuation of property, transaction history, and standard of care on purchase and sale agreement disclosure. Case hinged on property's as-is value and disclosures as is customary for a commercial REO transaction. Case settled at a significant percentage of Plaintiff's alleged damages.
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