Bruce Sturman Managing Director

FOR IMMEDIATE RELEASE
Manhattan, New York, United States of America (Free-Press-Release.com) February 14, 2011 -- According to Bruce Sturman getting to know the asset’s history and stakeholders, and the stakeholders’ motivations and legal positions, is critical. It can make the difference between a successful investment and a protracted struggle with multiple creditors.

Investing in an asset that is subject to complex financing structures requires careful evaluation. In an earlier era, a large commercial real estate project might have been primarily financed by first-priority and possibly second-priority mortgage debt, together with a substantial equity investment by the project owner’s principals. By contrast, at the height of the boom several years ago, financing on a comparable project may well have included, in addition to a mortgage loan, one or more levels of mezzanine debt, loan participation arrangements, and various derivative transactions such as loan securitization.