Trinity Advisors is a real estate research and advisory firm, focused on providing clients with knowledge that is timely and that seeks to capitalize on micro-level opportunities that are the result of macroeconomic events. We believe that for all the emphasis on world markets and global finance, real estate remains a local business and as such requires local knowledge and expertise to make informed investment decisions.
Trinity Advisors has developed a bank portfolio analysis product that, through public information searches and on-the-ground primary research, identifi es vulnerabilities within bank loan and REO portfolios. This product comes in the form of a custom report that provides current valuations on a sample size or comprehensive analysis of a selected banks’ real estate assets. The report can be as detailed as the clients’ needs dictate, considering numerous levels of criteria, including geographic parameters, asset types, “toxic” asset identification, asset size, level of non-performance, and other factors – generally completed for delivery to the client within two to four weeks from engagement. Over the past year Trinity Advisors has performed evaluations on loan portfolio’s totaling over $175 Billion for some of the country’s largest investment banks and investment management firms.
The following two case studies provide an indication of our research capabilities:
BANK 1 - ASSIGNMENT
To analyze the commercial real estate portfolio of a public bank with total assets of $133 Billion with the purpose of identifying and quantifying the amount of “toxic asset” exposure to the lender.
Determined that the lender had limited exposure to risky A&D construction loans, land acquisition loans, and condo loans above $3,000,000. The greater risk exposure was found in smaller construction loans between $500,000 and $3,000,000 (the average size $650,000). Many valuable conclusions could be drawn from this discovery, notably the lender has total exposure of $8.7 billion of these types of loans. Our on the ground team has personally seen collateral values of these types of loans decrease by as much as 80% of the unpaid principle balance. This lender could face mark to market adjustments up to $6.4 billion on these types of loans.
BANK 2 - ASSIGNMENT
To analyze the commercial real estate portfolio of a public bank with total assets of $28 Billion with the purpose of identifying and quantifying the amount of “toxic asset” exposure to the lender.
Determined that 65% of the lender’s nonperforming loans were those classifi ed as 1-4 Family properties. Approximately 88% of the non-performing loans were attributable to two large markets in the South. The majority of nonperforming loans came from the defaulting loans of community banks acquired over the past two years. The skyrocketing rate of additions to nonperforming loans from the two geographic markets identifi ed coupled with the already extraordinarily high level of non-performing loans on the lender’s balance sheet led us to the conclusion the lender is facing over $1 Billion of additional charge offs just in its exposure to 1-4 Family Property loans.
Trinity Advisors is a full-service commercial real estate firm that centers its business around investment, development, management, and brokerage, while owning and managing over $500 million worth of commercial real estate throughout the Southeast -- and Trinity Development Group, a Florida-based real estate investment fi rm that specializes in distressed debt, capital placement, and residential development.
As buyers of distressed debt and owners and developers of commercial property our team is uniquely positioned to analyze and understand the collateral securing real estate loans on lender’s balance sheets. With this knowledge, we identify the weak points in lender’s loan portfolios. Using public record searches we can identify the exact collateral that secures the loans represented on the balance sheet. Our observation of market conditions, area trends, and pricing pressure allow us to quantify the value of properties if they were brought to market today. These market values are compared to the unpaid principle balances of the loans that funded the real estate acquisition and improvements. This comparison is used to identify the scope of the lender’s potential for loan impairment.
Trinity Advisors helps clients make informed and sound real estate and bank investment decisions. We also offer a unique advantage for serving clients in an advisory capacity since:
- We are active participants in all aspects of the commercial real estate industry.
- We are investors ourselves.
- We have a breadth of experience that covers more than 40 years of operations in all major property types in both urban and suburban locations with a focus on the Southeast.