Due Diligence and Underwriting
Single asset, portfolio loans and real estate
Portfolio Due Diligence
Among the nation’s most experienced underwriters of loan and REO portfolios, VARCAP has developed effective and efficient approaches to underwriting portfolios ranging from a handful of assets to hundreds of loans and properties. From indicative analysis to thorough, bottom up assessment of each asset’s value and likely strategy, we provide thorough and thoughtful assessments of each portfolio.
VARCAP was founded by Renee Lewis, who led the portfolio acquisitions team at Hudson Realty Capital from 2010 through 2014, when the firm purchased over 1,000 small balance commercial real estate assets with UPB of approximately $900million. She also formed and owned Questor, a leading diligence provider for loan portfolio purchasers during the mid-1990s and CMBS B-Piece purchasers during the 2000s.
With experience including hundreds of portfolios and thousands of assets, VARCAP is able to work effectively with a broad range of stakeholders. Whether a community bank interested in assessing, marking or selling its NPL or substandard loans, a sophisticated market player adding to or reducing its portfolio, or a smaller investor interested in deploying capital in a position that provides a positive risk-reward profile – we are able to combine our knowledge of loan management, expertise in various property types and experience with ownership structures and finance to develop an understanding of value.
Property and Loan Due Diligence
VARCAP provides in-depth diligence services for equity or debt investment in single assets.
The scope of our work is developed with our clients and may include market surveys and market supply analysis, thorough review of property performance from lease review through expense and reimbursement analysis, development of financial modeling, coordination and review of third party reports. We have worked with properties that are in various stages of development and stabilization, for equity and debt positions throughout the capital stack and coordinate our review of physical, economic and legal considerations.
Through our comprehensive and systematic approach to due diligence, we identify and investigate property strengths and weaknesses and the attendant opportunity and risks, and we work with our clients to determine appropriate mitigants, structures and decisions.
| Property Types | Loan Strategies | Underwriting Services |
|---|---|---|
| Office | Restructure | Market, Analysis - Tenancy/Neighborhood and Market |
| Retail | Workout | Borrower/Sponsor Credit Review |
| Industrial | Discounted Payoff | Third Party Report Management and Review |
| Multi-Family | Note Sale | Income Analysis - Including Lease Abstracts, Leases, Expense Reimbursement |
| Hotel | Bulk Sale | Expense Analysis |
| Self-Storage | Foreclosure | Loan or Equity Structure Analysis |
| Mobile Home Park | Bankruptcy | Underwritten Cashflow Analysis |
| Land | Credit Memo/Asset Summary Production | |
| Lots | ||
| Esoteric - Golf Courses, Marinas, Etc |