X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NORWELL, MA-”Our goal is to maximize our client’s asset potential while minimizing their exposure,” Larry Corbeil, partner of Equity Recovery Advisors, explains. Banks and lenders have found themselves in a pickle lately, as they foreclose on developments that are unfinished and essentially unmarketable until their completion.

Equity Recovery Advisors was formed by Corbeil of Corbeil Associates, Inc., a loan work-out specialist; Greg Pando of Pando Associate Inc., an architectural firm; and Dave Dirubbo of Acella Construction Corp., a developer. The mission of their firm is as “the lending industry’s collaborative solution for assessing new loan requests and mitigating the impact of distressed assets throughout New England.”

“A lot of the banks I’ve been dealing with with Corbeial Associates have been looking for a full-service company,” Corbeil tells GlobeSt.com. The banks are looking for work-outs where, in addition to the monetary necessities, they want to have a value-added general contractor and a value-added architect to value engineer the projects that they’re taking back, he says. “We formed this company when we collectively saw the need for a firm that could provide workout solutions for financial institutions that may have troubled assets on their books,” he says.

The main point driven home, as apparent in this economy as any other, is that banks generally want these unfinished projects with outstanding loans off their books, but the problem for banks, as Corbeil explains, is a simple one: “They’re not landlords, they’re not developers.”

With the additions of developer and architectural input, the work-out can be a top-to-bottom affair. The additional elements can be brought to the table by altering part of the construction or installing less expensive appliances or counter-tops, for example. These things, in the long-run, will save the lenders money, which is the ultimate goal.

Corbeil admits, “[Lenders in these situations] will never get back to what they’re owed to give them par, to make them even. They are going to write something off.” The point is to help retain “as much earning back to the lender as humanly possible,” he says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.