DALLAS-Ann Hambly, founder and CEO of 1st Service Solutions, and Mike Meisenbach, founder of Asset Advisory Alliance, have launched 1st Equi-Debt Solutions.
Meisenbach will serve as CEO of the new company, which will help CMBS borrowers find equity and debt to pay off non-performing commercial real estate loans as part of their debt restructure. Early next year, it will launch a $100 million to $200 million fund.
Hambly tells GlobeSt.com that 1st Equi-Debt Solutions takes up where 1st Service Solutions leaves off. 1st Service Solutions serves as a borrower advocate and helps borrowers work with special servicers to restructure their CMBS debt.
“We’ve launched 1st Equi-Debt Solutions as an added solution for our borrowers,” Hambly explains. “We have $4 billion that we’re actively negotiating for borrowers today, and we’d like to be able to offer borrowers not just the solution through a restructure, but also help them find the money they need to pay off their loans once they’ve been restructured.”
Hambly says special servicers are increasingly willing to reduce the amount of debt borrowers owe or allowing borrowers to pay them off at values that represent the current market. She had a real-world example of a borrower in Dallas that had a $29 million loan on a single-tenant office building. The tenant moved out, leaving the borrower with an empty building and too much debt.
“We worked with the special servicer, which agreed to let the borrower pay off the note for $11 million,” Hambly notes. “We were excited, of course, but that meant the borrower had to have $11 million in cash sitting around or find a lender willing to offer 100% LTV. No traditional lender will do that, which is why we are offering this solution.”
Meisenbach has relocated from Newport Beach, CA, to Dallas to run the company. Most recently, he was the former principal and president of investment and capital markets advisory services for Lee & Associates.
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