Due Diligence

Waterstone supports our clients’ due diligence and loan underwriting requirements for all types of commercial real estate transactions and diverse financing structures. These financing structures include fixed-and floating-rate portfolio loans, highly structured securitized transactions, CMBS loan assumptions, and equity investments. Our loan review services help clients understand loan-level risks when buying, selling or managing portfolios. We work to understand clients’ needs and develop an appropriate review scope, considering factors such as the client’s history and experience with the seller, the seller’s size and experience, the representations and warranties to be provided to the buyer, the type of loan and the quality of the data.

Site Inspections

The company has substantial experience conducting and facilitating property site inspections for both commercial and residential real estate on behalf of large financial institutions.  Over the past 25 years our professionals have coordinated inspections for tens-of-thousands of real estate loans nationwide, with a goal of identifying any deferred maintenance items and following up with owners to ensure repairs were properly addressed and remedied.

Property inspections and property condition assessments include the condition, life expectancy and repair/replacement budgets for the roof systems, electrical services, common plumbing including hot water heaters, heating units, HVAC units interior/exterior walls, floors, windows and finished areas along with the grounds and surface lots adjacent to the building. When possible the report will include interviews with management and maintenance staff.

Asset Summary Reports

Our experienced real estate professionals and technical writers ensure that the report is comprehensive, insightful, and concisely written. It is based on a thorough and objective analysis of the strengths and weaknesses of the property and market, all third party reports, historical performance and projections, financing structure details, borrower history, and legal issues. We carefully identify investment risks, as well as potential mitigants to those risks.

Loan Assumptions

Our extensive knowledge of the CMBS loan servicing industry can help buyers and sellers of properties encumbered by CMBS debt. We can help sellers complete the loan assumption application, which includes collecting the necessary information and documentation from the buyer in order to respond to the servicer in a timely manner. This improves efficiency and reduces the overall approval time.

Our reports are detailed and formatted according to client specifications, and we remain in constant dialogue throughout the assumption process. This helps ensure there are no surprises when the final report is delivered. Our complete line of assumption services includes:

• Underwriting Analysis
• Analysis of Current & Proposed Borrower/Guarantor
• Property Description and Market Analysis
• Current & Historical Operating Statement Review
• Rollover Analysis