Asset Management Services

Citation Capital Partners, Inc. Principals Mike Gottlieb and Henry Bryan are industry-leading commercial mortgage brokers and consultants specializing in permanent, bridge, and construction financing in addition to joint venture equity, preferred equity, mezzanine and other structured financing. CCP has formed a consulting capability to provide a variety of Asset Management and Advisory Services 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. In addition we both have performed in asset management roles for family and friends over the years on a case by case basis.

With over 50 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 can help interface with them. We can do any or all of the following:

  • Complimentary Initial Analysis to determine if CCP can add value, including a proposal on scope of work and fees for a 90 day trial.
  • Time Efficiency - Perform the tasks that don’t make you money, and allow you to spend that time doing whatever you do best
  • Alternative to fixed overhead - Efficient and cost-effective alternative to in-house employees
  • Full evaluation report – Assessment of all areas of the real estate and/or business operations – in depth analysis with initial recommendations
  • 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

These are functions you may already be doing, whether on your own, or for other partners or family members, but not getting compensated for. It may be a lot easier, less brain damage, to source these out to an objective 3rd party like CCP, to do a lot of the heavy lifting. If you decide this may be something worth discussing further we are happy to do an initial evaluation and come to a mutually agreeable fee structure that works for you. We want you to feel like the fees you pay CCP are well worth it and justified, so we strive to make sure they are fair.

If you see these services as something that could be of value to anyone you know – for unique situations where certain types of smaller owners of commercial real estate with limited in-house capabilities, or family members who have inherited a real estate portfolio and might not have the expertise or time, to advise them on how to maximize revenue, minimize expenses and/or best options for long term cash flow and asset appreciation.

Asset Management
Case Studies

$1,400,000 valuation increase due to 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

Significant Increase in Cash Flow after Audit and thorough evaluation of individual properties and portfolios for multiple property owners was able to realize substantial saving and/or cash infusions due to:

  • $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

$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 original Phase 1 consultant 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 exist and have deep pockets. A fixed cost settlement was reached and our client only had a small portion of the responsibility. We were not involved in putting this agreement together.
  • Our Client brought us in when the Fixed Cost Vendor could not perform. 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 the most complicated issues.