OUR SERVICES

MORTGAGE ANALYTICS

KCCI Commercial's core competencies in commercial mortgage underwriting and real estate analysis are applied to conventional lending situations and structured capital markets transactions, whether dealing with new or seasoned loans and portfolios.  We are equally comfortable working in the public or private sectors, having cut our teeth in the industry during the days of the Resolution Trust Corporation and savings and loan bailout.

DUE DILIGENCE

KCCI views loan due diligence as the secondary market process that precedes the assessment of risk and assignment of value.  From KCCI's perspective, loan due diligence is that analysis and data gathering performed in conjunction with the proposed sale or acquisition of existing loans and portfolios.  Due diligence is forensic and current in nature, and principally concerned with ascertaining the here and now, whether in regard to performing, sub-performing  or non-performing loans.  The process starts with the collection of all original loan data (legal and business terms of the transaction as well as third-party report information) and follows through to the present, including review of all modifications and other additions to the credit file.  Hundreds of data elements for each loan may be collected in the due diligence process, and all are integrated into a computer database for post-collection analysis.  In contrast to other firms in the industry, KCCI performs its initial file review with its most seasoned, senior personnel because this is the only point in the data collection process where the entire asset file, page-by-page, is examined.  We view this as a differential advantage to our clients.

UNDERWRITING & CMBS INVESTMENT ANALYSIS

KCCI views due diligence, (primary market) new loan underwriting and CMBS/B-piece as analytic activities that go hand-in-hand.  The fundamental difference between the two disciplines is that due diligence is primarily concerned with looking back through the history of property operations up to today while underwriting is concerned with developing informed assumptions and identifying risk factors relating to the future viability of the property from today through the loan term.  The underwriting professional combines historic information and current market conditions and trends to assess and value future risk(s) to the performance of a given property.

While conceptually similar in regard to risk identification, B-piece underwriting is primarily focused on developing a current (and sometimes going-forward) pro-forma cash flow for the underlying collateral and identifying problems or risks that could impede occupancy and jeopardize loan repayment.  KCCI is experienced in the time and professional pressures inherent in the B-piece market.

KCCI personnel have underwritten and re-underwritten loans on all property types, including car washes and religious facilities.  Our underwriting procedures are industry standard and often utilize client proprietary models. KCCI has underwritten individual loans from $250,000 to $550,000,000 that have included all manner of complexities.  Our portfolio projects have included dozens of loans per deal that had to be underwritten under very tight timeframes.

VOLUME

KCCI personnel have underwritten or performed due diligence on more than $30 billion of commercial real estate, making KCCI a national leader in these fields.  Our due diligence work has supported numerous fusion and non-fusion conduit offerings involving many of the nation's most prolific commercial real estate lenders.

PROPERTY ANALYSIS / COLLATERAL ANALYSIS / SITE INSPECTIONS

KCCI Commercial is a national leader in property inspection services.  KCCI has performed thousands of inspections throughout the United States and in Canada.  From mass portfolio inspections for the Federal government to the latest conduit financings and portfolio sales, our years of site inspection experience enable us to provide our customers with unparalleled product and service.  KCCI's site inspection expertise is well respected in the industry and its reports are routinely included in securitization packages delivered to the rating agencies and in loan sale packages, both of which end up in the hands of investors nationwide.

KCCI Commercial's industry-standard Commercial Property Analysis (“CPA”) report has been used by lenders, asset managers and the Federal Government since before conduit lending began.  The CPA process combines a secondary-market-type property inspection, which records and evaluates the subject's location, neighborhood characteristics, notable environmental issues, fundamental property facts, condition and deferred maintenance with a market study that gathers current market data, describes market activity and examines competitive rental properties.  Sale comparable data are also available.  CPAs typically address trends to alert the reader to possible property performance declines and the potential need for special servicing or loss mitigation, before they're necessary.

KCCI Commercial performs:

Each inspection type can be custom-tailored to support client objectives or legal (PSA) requirements.  KCCI welcomes the use of client- and investor-supplied inspection forms, as may be necessary to comply with documentation standards.

STAFFING

By nature, KCCI's consulting assignments are temporary.  As a result, it can provide turnkey support for specific project requirements or, as requested, provide commercial mortgage finance temporary professional staffing to clients, who can have direct management of assigned KCCI personnel.  KCCI Commercial professionals include multilingual personnel who are experienced in foreign language assignments.

To a limited extent, KCCI has been able to provide help with permanent staffing requirements.  Please contact us if you would like to discuss this service.

BROKERAGE SERVICES

KCCI's brokerage services encompass both loan placement and secondary market loan sales and acquisitions, including portfolio brokerage.  We can also help acquire and dispose of real property throughout the country.

Consistent with its history of supporting the commercial secondary mortgage market, KCCI Commercial has been in the business of helping portfolio owners and buyers alike with their loan disposition and acquisition objectives since 1993.  In the normal course of its business, KCCI has been involved in the marketing of domestic loan portfolios worth (at the time of marketing) some $200,000,000.  We are experienced in preparing performing, sub-performing and non-performing assets for sale, bringing them to market and operating loan sale war rooms, if necessary.

As an example of our marketing assignments, KCCI was engaged to help a Midwestern banking institution with the sale of some $40 million of mixed commercial real estate loans.  Among these loans was one collateralized by a full-service, flagged hotel historically dependent on a recently-replaced international airport.  Other loans were equally problematic.  Over the course of four months and several asset changes, KCCI successfully obtained five bids from nationally prominent portfolio buyers, one of whom bid sufficiently high to bring the transaction to conclusion.

KCCI's loan brokerage capability is based upon 14 years of experience in the marketplace doing work for insurance companies, conduits and other lenders.  Our regular contacts are often chief underwriters and other senior level executives who are the decision makers in their organizations, not the marketing representatives whose job it is source deals and then pass them on for decisions.  Through our own relationships and those of a couple of long time partners, we are able to provide unprecedented access to lending programs of all types throughout the United States and obtain far-more-rapid results without the typical broker limitations of a few key sources.  We are also occasionally aware of special portfolio situations where particular lenders are in need of certain assets to round out a securitization or portfolio transaction, which can yield very good deals for lucky borrowers.

KCCI Commercial's loan marketing protocol includes maintaining strict confidentiality of client sellers so as to safeguard the identity of those wishing to remain anonymous.

REAL ESTATE CONSULTING SERVICES

KCCI Commercial's core competency in commercial real estate analysis spawned its conventional commercial real estate consulting practice.  KCCI personnel have the capability to analyze complex transactions and provide clients with timely, useful analyses and advice pertaining to a contemplated deal and possible alternatives.  KCCI specializes in understanding and evaluating each property within its operating context and then providing the qualified insight necessary to position assets for the desired result -- be that acquisition, disposition, loan origination with local, national, conduit or traditional lenders, asset management or other conclusion.

Loan Servicing Support

KCCI Commercial's fundamental asset-level understanding of commercial real estate lending and property operating dynamics enables it to offer the very best in mortgage servicing support. KCCI personnel can audit loan servicing records to ascertain MIS/servicing system conformance with underlying legal documentation, servicer and borrower compliance with loan terms and conditions, correct deficiencies or develop a plan for corrective action, monitor on-going servicing and sub-servicing arrangements and inspect collateral, as described in the Commercial Property Analysis Section.

Under its "specialized services" umbrella, KCCI can also develop specific purpose products to achieve unique client objectives. We welcome your inquiries regarding those requirements that fit under the specialized services umbrella.