Our interview in this edition of Bowden's Market Barometer is with Bill Lee, President of Madison Residential Advisors and a specialist in workouts and restarts of distressed properties.
BMB: The term “workout” tends to be painted with a broad brush. Can you define the term more specifically as it relates to residential, resort or mixed-use projects and what it takes to have a successful workout?
Lee: It depends on the nature of the project, who has the reins, and where the project is in the distress cycle. First, all the players – whether the original owner, new owner, or the lender/investor, must be willing to spend the money necessary to turn the project around.
BMB: Are you saying there’s perhaps more than one goal and the strategist must have a working understanding of individual goals?
Lee: Absolutely. There are stakeholders: Developers/owners, lenders, and residents and club members all have a stake in the project’s success. Add to the mix government officials and mandates and it is clear that the restart process is complicated. Does the developer or new owner want to hold the property for long-term investment and continue development? What is the owner’s vision for development and what terms is he subjected to? Will the vision concur with the residents’ and members’ wishes and expectations? If the financial institution has the reins . . . (read more)
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