Commercial Special Servicing

& Due Diligence

Assistance for Commercial Special Servicing

AEI’s commercial due diligence and valuation services provide valuable insights to facilitate informed decision-making and effective resolution of loan distress situations.

What is commercial special servicing?

Commercial servicing is a critical process that arises when a loan faces financial distress or other challenges, making it difficult for the borrower to meet their obligations. In such cases, lenders or loan servicers appoint specialized professionals, known as special servicers, to manage these troubled loans.

Unlocking Opportunities with Commercial Due Diligence

Commercial due diligence forms the foundation of successful special servicing. At AEI, our experienced team conducts assessments of commercial properties or projects associated with distressed loans. By identifying risks and uncovering opportunities, our due diligence services enable you to make well-informed decisions.

Valuation Services for Informed Decision-Making

Accurate valuation is crucial in special servicing scenarios. AEI provides commercial valuation services to determine the fair market value of distressed properties. Our experienced valuers employ various methodologies, including sales comparisons, income approaches, and consideration of prevailing market conditions. With our on-time, high quality, accurate valuations, you can navigate loan modifications, restructurings, or potential property sales with confidence.

How AEI Consultants
Helps in Commercial Special Servicing

1. Property Condition Assessments

Commercial servicing often deals with distressed or non-performing commercial real estate assets. AEI can conduct comprehensive property evaluations to assess the current condition and potential risks associated with the properties.

These assessments typically include the property’s site, the physical structure of the building, and its systems such as HVAC, plumbing, and electric. Special loan servicers can use this information to make informed decisions about the assets they are managing.

2. Environmental Risk Assessments

Understanding the environmental risks of a distressed commercial asset is a crucial piece of the due diligence and decision-making process. AEI can perform a wide array of tests to evaluate the historical, existing, and potential future risks for a property’s environmental contamination. This may include a Phase I ESA, Phase II ESA, or Environmental Permitting and Planning, all of which can inform a commercial special servicer’s choices about how to manage the property.

3. Natural Hazard & Climate Resilience

Now more than ever, climate risks are a major consideration in the viability of a commercial real estate property. AEI can help evaluate a property’s climate resilience against natural hazards such as flooding, extreme temperatures, hurricanes, tornadoes, and wildfires. With due diligence strategies like climate risk reviews, property resilience assessments, or energy audits, a clearer understanding of the physical and financial risks can be provided for commercial servicing.

4. Due Diligence Reports

The firm can prepare due diligence reports with any of our assessments that consolidate all relevant information and findings regarding the property. These reports provide commercial special servicers with a clear understanding of the property’s strengths, weaknesses, opportunities, and threats. They serve as a foundation for decision-making and are often used to communicate property information to stakeholders, investors, or regulatory authorities.

5. Valuation & Appraisal

AEI can provide independent and unbiased valuations and appraisals of commercial properties. This is crucial for special servicers as they need accurate assessments of the property’s value and financial performance to determine appropriate strategies, such as foreclosure, restructuring, or asset disposition.

Our process of reviewing all documents, visiting the site, and interviewing strategic players, allows our experienced professionals to provide detailed analysis and expert insight into the decision-making process.

AEI Can Help You Achieve Special Servicing Success

When it comes to managing distressed loans through commercial servicing, AEI Consultants offers the insights you need. Our commercial due diligence and valuation services empower you to make informed decisions, decrease risks, and maximize opportunities for successful loan resolution. Contact us today.

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