Asset Management - Services

Citation Capital Partners, Inc. Principals Mike Gottlieb and Henry Bryan offer services designed to help a select group of clients who may have needs for functions related to Asset Management. Throughout the financing process we get to know our clients in ways they sometimes don’t even know themselves – objectively. We have performed in asset management roles for our clients on a case by case basis.

With over 60 years of combined experience in virtually every type of property type and transaction, we are uniquely qualified to handle/advise in most situations. While we are not property managers, accountants, attorneys or general contractors, we have experience interfacing with them to help maximize services. We can do any or all of the following:

  • Complimentary Initial Analysis to understand the client’s goals and assess of all areas of the real estate and/or business operations – in depth analysis with initial recommendations, determine how CCP can best help achieve those goals, including a proposal on scope of work and fees
  • Complete Monthly Reporting of all Activities – Financial summaries, action items, variance recognition, identifying red flags and problems before issues arise
  • Alternative to fixed overhead - Efficient and cost-effective alternative to in-house employees
  • CFO function – Analyze all aspects of the numbers to spot what is being done efficiently and what needs to improve, where to cut costs without sacrificing performance and how to increase revenues
  • Strategic Plan – help you focus on what you do best, identify growth opportunities and cut out areas of business that are not efficient or profitable
  • Assist on “as-needed” basis with 3rd party process – Attorney, Accountant, Contractor, Leasing/Investment Sales Brokers, and other 3rd party consultants to the extent we can manage these processes and limit your time to decision making versus minutia, you are freed up to be more time efficient
  • Our full Asset Management capabilities

CASE STUDIES

$1,400,000 valuation increase from multi-tenant office building due to a successful property tax appeal.
  • Successfully made the case for a decrease in annual property taxes of $85,000
  • At a 6% cap rate the valuation increase was approximately $1.4M
  • The rationale was due to a complicated and expensive environmental issue with a very large, but quantifiable clean-up cost. We supplied the decision makers the necessary back-up documentation to validate the scope and cost.
  • The Tax Assessor agreed with our calculation to lower property value dollar for dollar with the cleanup cost, which resulted in the $85,000 annual decrease going forward
Over $3,000,000 in savings from CCP Asset Management – As a result of our Comprehensive Audit and thorough evaluation of a complicated portfolio of different property types including land our client was able to realize substantial saving and distributions:
  • $1,700,000 – Our client received this credit as a result of Buy/Sell Trigger by their Partner who wished to unwind a very complicated Partnership. Upon our review of the Operating Agreement, we found that their Partner had made an error in calculating the appropriate Buy/Sell amount and that resulted in a purchase price that our Client accepted that was $1.7M higher than was initially offered.
  • $250,000 – Our Client received this additional payment as a result of Buy/Sell Audit
  • $50,000 – We uncovered an error in the proration calculation on sale of an asset. Our client was the buyer, and even though the transaction had closed, we were able to get our client the full $50,000.
  • $65,000 – We uncovered an error when auditing swap payment calculations for a loan that our client had with a bank requiring a Libor Swap Agreement to fix the loan payments. After reviewing all of the statements we found a substantial error was made and we helped our client get a refund of $65,000.
  • $150,000 – reimbursed to Client after tenant vacated premises at end of lease. After thorough review of all lease documents, we were able to get this reimbursement paid upon exit.
Negotiated substantial discounts and fee reductions for multiple borrower with multiple lenders as a result of our high level network of contacts at many lending institutions. We know how to present and ask the right people to get the right answers.
  • $2,500,000 discount negotiated on a note purchase by borrower on a retail center
  • $250,000 discount negotiated on a note purchase by borrower for a land parcel
  • $300,000 in prepayment penalty waved in refinance of a vacant office building
  • $30,000 prepayment penalty waved on sale of office building
Major Vacancy Filled as the result of CCP Asset Management of a mixed-use retail/commercial property
  • When CCP took over Asset Management we noticed the largest space that had been vacant for 3+ years
  • CCP recommended a different leasing broker that was more knowledgeable in the local market
  • A Credit Tenant was identified and now the property is 100% leased
  • Because the new tenant was a “Credit Tenant” the increase in value was substantial
Solved Major Development Obstacle of Multifamily Development – As a result of our Comprehensive Audit and thorough evaluation of a complicated portfolio of different property types including land our client was able to realize substantial saving and distributions:
  • As the project was getting ready to fund a construction loan and break ground, the city identified an entitlement issue which had never been resolved
  • CCP stepped in and through a consultant we had worked with before, were able to successfully solve the problem which allowed the project to successfully be built
$2,200,000 Direct Cost Savings by Successfully Resolving Extremely Complicated Environmental Contamination Issue on a Commercial Property that could have caused a Total Loss to our Client.
  • During a refinance, the lender’s environmental consultant recommended a Phase 2, which identified a major contaminant. The Phase 1 consultant from the acquisition missed it, but had since gone out of business, so our Client had to accept responsibility for the clean-up, which was substantial.
  • Fortunately, the contamination was traced back to multiple aerospace companies 50+ years prior that still existed and had deep pockets. A fixed cost settlement was reached with the consortium of aerospace companies and their respective attorneys, and our client only had a small portion of the responsibility. We were not involved in putting this agreement together.
  • $300,000 in prepayment penalty waved in refinance of a vacant office building
  • Our Client brought us in when the Fixed Cost Environmental Company could not perform the clean-up. We managed the process of finding a new vendor with better financials at a $2M reduced cost, and avoiding $200,000 in additional legal fees associated with putting the agreement back together. The process, while incredibly complicated, gave us unique insights on how to handle some of the most complicated environmental and legal issues.