SitusAMC Releases White Paper Shedding Light on the Deeply Hidden Risk in Commercial Real Estate Portfolios

New York, NY (June 7,  2024) - SitusAMC, the leading provider of investment advisory, strategic outsourcing, talent, and technology solutions to the commercial and residential real estate finance industries, has released a white paper titled, “What Looms Beneath the Surface: How Forensic Diligence Builds on CRE Asset Management to Uncover & Mitigate Deeply Hidden Risk.” The white paper leverages SitusAMC’s deep experience in forensic diligence to explore hidden risk factors in commercial real estate (CRE) loans and portfolios and the best way to approach identifying and managing these risks.

“With CRE distress on the rise and a wall of maturities looming, lenders and asset managers need to be on guard against rising risk in their portfolios,” stated Sandra Adam, CPA, Head of SitusAMC’s Financial Diligence & Forensics Analysis team. “If you suspect something is off in your CRE portfolios, don’t wait. Dive deep and identify what is wrong so it can be addressed.”

The paper highlights several risk areas that often go overlooked, including:

• Financial inconsistencies in the balance sheet
• Misappropriation of cash
• Guarantor financial instability
• NOI inflation

To prevent these losses, the paper suggests starting early and bringing in experts with an accounting and investigative mindset to help lenders and asset managers understand hidden threats, minimize exposure, and mitigate financial risk when they decide to take back the property.

Download the White Paper: https://www.situsamc.com/beneaththesurface

Financial Diligence & Forensic Analysis

SitusAMC's Financial Diligence & Forensics Analysis provides CPA-led forensic diligence to proactively identify and mitigate risk in large, complex loans and portfolios. The team works hand-in-hand with participants across the debt and equity spectrum, including CRE operators, banks, management companies, special servicers and law firms, to conduct comprehensive analysis to uncover hard-to-find risk factors.

Offerings include:

• Pre-Foreclosure Balance Sheet Analysis
• Sponsor Guarantor Financial Analysis
• Flow of Funds Cash Analysis
• Construction Cost Analysis

For more information on SitusAMC's Financial Diligence & Forensics Analysis, visit https://www.situsamc.com/uncoverrisk or contact Sandra Adam at sandraadam@situsamc.com.

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About SitusAMC

SitusAMC is a leading independent provider of technology, strategic outsourcing, talent and advisory solutions to the commercial and residential real estate finance industries. The company helps clients identify and capture opportunities in their real estate businesses through industry-leading services and innovative technologies that drive operational efficiency, increase business effectiveness, and improve market agility across the entire lifecycle of their global real estate activity.