There was a great article last Saturday in the San Francisco Chronicle about the necessary role of workout firms in helping distressed commercial property owners.  Breakwater Equity was featured as a workout firm that recently helped Peacock Gap, a well-known golf course client in the Bay Area.

Here is an interesting from the article by Ben Thypin, senior market analyst at research firm Real Capital Analytics:

“During boom times, commercial real estate owners and developers took out financing without realizing what they were getting into and what their rights or recourses were if things went bad,” Thypin said. “A commercial finance is very complex; there are often multiple loans, multiple stakeholders. To have someone who knows the market well and works on behalf of the owner puts them in a better position to negotiate a settlement that benefits them as much as possible.”

The article goes on to outline a case study of Peacock Gap, which Breakwater helped cram down from $12 million in loans to just $3.4 million, a 71 percent reduction.

Here is the link to the article. We would appreciate any comments you might have in the comments section below the article.  There are a number of uninformed readers commenting that don’t understand commercial real estate or the workout process and it would be great to add a more sophisticated dialogue to the mix.