Real Estate Debt Restructuring
Build a workable resolution around the property’s cash flow, capital needs, and realistic recovery alternatives.
For lenders, creditors, owners, and investors facing a commercial real estate refinancing gap or a capital structure the asset can no longer support. AGIMANO connects property-level analysis with the debt, ownership, and timing constraints shaping a workout.
When the existing debt no longer fits
- A loan maturity arrives before the property qualifies for replacement financing
- Vacancy, lease rollover, or operating costs have weakened debt-service capacity
- Required repairs or leasing expenditures exceed available reserves
- A distressed loan, recapitalization, or enforcement alternative needs an economic assessment
What the assignment can cover.
Establish the asset economics
Review historical operations, current tenancy, near-term leasing requirements, and deferred capital needs. Distinguish recurring cash flow from temporary improvements and unsupported projections.
Compare the alternatives
Evaluate extension, modification, paydown, new equity, refinancing, debt sale, or property disposition scenarios as appropriate. Compare cash requirements, execution dependencies, time, and potential recoveries.
Develop an executable plan
Translate the analysis into a proposed capital structure, operating milestones, and reporting framework. Support commercial discussions and coordination with the parties and their counsel.
A defined process. Clear responsibilities.
Build the baseline
Reconcile the debt schedule, property cash flow, ownership structure, collateral, and the deadlines driving the assignment.
Stress-test the options
Test leasing, interest expense, capital costs, value, and exit timing. Identify what must happen for each alternative to work.
Advance the resolution
Organize the information needed for a decision, track agreed milestones, and coordinate implementation within the engagement’s scope.
Start with the property and the immediate issue.
An initial discussion establishes the situation, timing, and whether the proposed assignment fits. Supporting materials can follow through an agreed information-sharing process.
- Current loan balance, maturity, payment status, and debt schedule
- Rent roll and recent operating statements
- Capital expenditure plan, leasing pipeline, and available liquidity
- Ownership structure, lender correspondence, and proposed resolution objectives
Should a workout begin before a maturity default?
Earlier analysis can reveal the size of a refinancing gap and the steps needed to address it. Useful starting points include a realistic cash-flow forecast, capital budget, and view of refinancing or sale capacity.
Is an extension always the best answer?
An extension creates value only if the additional time supports a credible improvement or exit. The analysis should account for carrying costs, necessary capital, execution risk, and alternatives available to the parties.
Restructuring alternatives depend on stakeholder agreement, transaction documentation, and any required approvals. Outcomes are evaluated individually.
Property details drive the analysis.
Retail and shopping centers, hotels and hospitality, office buildings, and multifamily communities each carry different operating needs. The review accounts for tenancy, management, capital requirements, and the financing or legal issues affecting that asset.
Related capabilitiesPhotography illustrates property types and does not represent completed AGIMANO assignments.