Asset Revitalization Solutions, LLC Tops $100 Million Mark in Distressed Loan Purchases
Asset Revitalization Solutions, LLC, an Austin, Texas-based distressed CRE asset management company, completed the acquisition of $73 million in distressed loans from a NY bank for more than $100 million in distressed loan acquisitions in 14 months.
“We have doubled our growth, built up our infrastructure and are poised to actively execute in this market,” says Cathy Vann, CEO of Asset Revitalization Solutions.
Vann’s partner Jeffrey Price, Chief Investment Officer, emphasizes that in the current climate there will be great opportunities for both buyers and sellers in the distressed-assets space. “There’s roughly $1.4 trillion in commercial real estate loans coming due by 2014, most of which were made at the top of the market in 2007, Price says. “We expect to continue the growth momentum by leveraging our seasoned infrastructure and ability to source assets across the country.”
Vann adds that the company’s affiliation with Miami-based Shay Investment Services “has proven fruitful in developing direct negotiations with banks seeking to sell or partner with us to maximize recovery of distressed assets.”
Asset Revitalization Solutions secured its recent acquisition of distressed assets through a special purpose vehicle limited liability corporation, in which the company serves as an asset manager and special servicer. The company secured $45 million in institutional capital to fund the acquisition.
“This most recent purchase is an opportunity for us to demonstrate the strength of our proprietary servicing platform, STars,” says Bo Tanner, Chief Operating Officer of the company. “We took 20-plus years of experience and asset management protocols and developed a cloud-based servicing platform to track individual assets on a daily basis and ensure that each loan is performing according to our business plan goals. When a loan’s performance falls below expectations, we are alerted and can immediately take steps necessary to turn that performance around. This platform allows us to scale our business quickly.”
Asset Revitalization Solutions is aggressively pursuing its focus on acquiring distressed loans—working with loan sale advisors as well as negotiating or partnering with banks that are looking to reduce nonperforming assets and problem loans that invite the scrutiny of bank regulators.
Jay McEntire, Chairman of Asset Revitalization Solutions and CFO/Head of Strategy for Shay Investment Services, says, “I am often asked by lawyers and bankers, ‘why is Asset Revitalization Solutions more successful at recovery than the existing holder or bank?’ The answer is straightforward. We are focused on maximizing recovery, while banks are focused on minimizing losses. It’s a subtle difference but when you’ve committed to generating a return for your investors, you’re laser focused on getting results. Additionally, we are not capital constrained or under regulatory pressure to reduce nonperforming assets; therefore, we have a little more flexibility in working with borrowers in realizing their full potential.”
Vann has 25 years of experience in distressed asset management including working out assets for failing thrifts and the Resolution Trust Corp. in the mid-'80s and then raising institutional capital and acquiring distressed assets from the RTC in the early ‘90s in partnership with Citi, Goldman Sachs, Credit Suisse and AIG. She formed Asset Revitalization Solutions with Jeff Price, a founding member of AIG Global Real Estate Investment Corp, with more than 30 years of experience in commercial real estate development and finance, and with McEntire, who has 25 years of experience as an investment banker and executive including more than $1.7 billion in M&A transactions in banking, real estate, health care and energy.
For more about Asset Revitalization Solutions, visit www.arscre.com.