Recap Advisors

"Recap provides top notch service and exemplary work product. Their extensive knowledge of real estate and current trends in the industry allow them to present a detailed and thorough report that helps facilitate the closing of a transaction."

Andrew J. Weil
Executive Managing Director
Centerline Capital Group

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Representative Clients

We've worked with non-profits, partnerships, and government agencies across the country. Here are a few representative clients.

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Team

Ethan Handelman
Philip B. Silva
Thacher Tiffany

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Contact

Ethan Handelman
T: 617.338.9484 x218

Representative Clients

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Millennial Housing Commission

Program Design

Congress-chartered Millennial Housing Commission (MHC) needed expert assistance in recommending changes to U.S. affordable housing policy

Recap (with Compass Group)

  • Wrote a definitive study of the Low Income Housing Tax Credit’s effectiveness and efficiency
  • Created financial models to analyze policy proposals to determine their cost to government and affordability impact
  • Advised the MHC on the ramifications of policy proposals

The MHC relied on Recap and Compass’ work to form its recommendation to Congress.

Affordable Homes Program, Republic of Ireland

Program Design

Affordable Homes Program wanted to create 1,000 affordable apartments in the Greater Dublin area within 3 years while stimulating professional management and ownership of affordable rental housing

Recap (as a subcontractor to the Affordable Housing Institute)

  • Investigated the Irish housing market and comparable best practices in the U.S. and U.K.
  • Designed a soft debt and rental subsidy program to stimulate private sector participation
  • Held market soundings with participants and stakeholders
  • Assisted in development of an RFQ as the initial stage of the program

The initial stage of the program has generated substantial private sector interest, and roll-out of the program is ongoing.

Recap is currently assisting Ireland to roll out the full program

Security Properties

Fairness Opinion

Fund general partner wanted to execute a merger transaction to buy out fund investors. Given the apparent conflict of interest, the GP needed to a establish a fair price that would withstand challenge

Recap

  • Collected full financial data on each property, both conventional and affordable
  • Developed a financial model to evaluate multiple value scenarios for each property
  • Assessed affordability commitments and transactional opportunities for the affordable properties in the fund
  • Issued a formal fairness opinion substantiating the buyout price

The transaction closed successfully, resulting payments of approximately $5 million to fund investors

National Affordable Housing Management Association (NAHMA)

Program Design

Affordable properties faced large unexpected insurance and utility cost increases that threatened property viability

Recap

  • Created a Recognized Increase Cost mechanism to cover short-term cost increases and allow for ongoing recognition of higher costs by HUD
  • Proposed an implementation that required no new regulations or legislation, or off-cycle rent increase processing
  • Presented the proposal to HUD on behalf of NAHMA and other trade associations

This proposal was supported by a coalition of industry trade associations. Despite initial positive response from HUD, the proposal is awaiting implementation

Boulder Housing Partners

Strategic planning

Housing authority with mixed portfolio of public and private assets was losing money, in part due to the financial drag of public housing, and needed to put operations on firm financial footing

Recap

  • Analyzed a portfolio of public housing, tax credit, property-based Section 8, mixed-income, and unassisted affordable properties
  • Simulated asset-based accounting and created Net Operating Income estimates for clear reporting
  • Recommended specific strategies for property management, asset management, capital deployment, and subsidy reconfiguration

Boulder is in process of implementing recommendations

TD Banknorth

Strategic planning

Investment bank had portfolio of post-mature tax credit investments accumulated for CRA credit and through bank acquisitions. Wanted to realize residual value and minimize holding risk, while maintaining its CRA rating.

Recap

  • Analyzed each asset in the portfolio, and categorized them to enable decisions
  • Created an asset management plan offering specific recommendations for each asset
  • Proposed ways to realize residual value and minimize holding risk

Recap is currently performing asset management on the post-mature assets

CharterMac (Vista Alicante)

Fairness opinion

Syndicator limited partner in 100 units of senior housing needed to decide on a sale proposal by the general partner in the face of potential conflict of interest

Recap

  • Created financial models to compare the proposed transaction to a baseline scenario
  • Assessed future restrictions and opportunities for this elderly-occupied LIHTC property
  • Issued a formal fairness opinion defining specific transaction parameters of a fair outcome for all partners

Partners reached agreement and proceeded with sale that generated $3.25 million in net proceeds