Next Wave JV Targets FDIC Deals

Next Wave president Dean Lyons says that the company, which is a certified FDIC contractor, has positioned itself to provide "a wide and disparate range of services" including bank workouts, asset valuation and repositioning, construction services, disposition and environmental due diligence. Next Wave will also act as principal to acquire or recapitalize FDIC assets, according to Lyons.

While Next Wave will look at individual opportunities on a case-by-case basis, the firm is focused primarily to take on assignments related to FDIC problem and failed banks. According to the most recent reports, the list of FDIC problem institutions has grown from 171 to 252. Total assets of these institutions also increased from $115.6 billion to $159 billion.

"We have the bench strength and financial resources to handle anything that the FDIC can throw at us," says Lyons, who has more than 20 years of experience in real estate finance and asset management. He notes that the company's princpals represent more than 200 years of collective experience and have been personally involved in complex real estate deals valued at nearly $25 billion.

The Next Wave partners have experience in previous FDIC asset portfolio liquidation as well as work with the Resolution Trust Corp., the entity that was formed during the savings and loan crisis in the late 1980s and early 90s when more than half of the nation's thrift's failed.

Lawrence Brewster, chairman of Portfolio Property Advisors and a principalof Next Wave, notes that although the new firm we can provide thorough analysis of a bank's owned real estate, "We don't have to wait until the process is complete to move FDIC assets." Brewster adds that there are a lot companies with capital that haven't overleveraged themselves.

Those companies that have not overleveraged, Brewster says, are in a position to "take advantage of the attractive pricing we'll likely see among these failed bank real estate assets." He adds that Next Wave has many strategic, well-funded buyers for these properties whether sold as-is or repositioned."

According to Marji Knitter, president of the Moote Group and a principal of Next Wave, the three firms in the new joint venture complement one other extremely well. She cites the firms' experience in banking, asset management, workouts on the lending and equity side, development and construction, appraisal and investment strategy. The Moote Group brings the comprehensive assessment of more than 4,800 projects throughout California, Arizona, Nevada and a dozen more states, "which allows allows us to be effective and timely in our analysis," Knitter says.

Next Wave Inc., a federally-certified minority and woman owned business, isowned equally by its joint venture partners. Third Wave provides real estate advisory services to borrowers, owners, investors, and lenders, including loan restructurings, interim and crisis management and due diligence. The El Segundo, CA-based firm also acts as a principal and operator, investing in and managing undervalued real estate opportunities.

Portfolio Property Advisors is a national real estate services consulting firm that specializes in the acquisition and financing of strategically identified, off-market properties and portfolios. The firm was founded by Brewster, its chairman, who is a veteran consultant in strategy, operations, valuation and marketing to commercial real estate owners.

The Moote Group is a leading land management firm specializing inengineering feasibility, development and building costs to lenders, borrowers, owners, investors, builders, developers and asset managers.