Recap Advisors

"Recap has assisted the Authority in many capacities over the years, including new loan underwriting, program design, and LIHTC best practices. We always get excellent results with Recap."

Enid Rivera Sánchez
Director of Development and Financing
Puerto Rico Housing Finance Authority

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Representative Clients

We’ve peformed transactions on 736 properties in 44 states. Read about a few.

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Team

Todd Trehubenko
Shannon Lestan
Philip B. Silva

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Contact

Todd Trehubenko
T: 617.338.9484 x214

Recapitalize

Make the best choices in restoring your property’s financial health

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Property owners need to be constantly aware of the financial status of their assets as well as how these assets relate to the surrounding financial environment. Both are constantly changing, even as the properties themselves age and require renovations or even redevelopment. The dynamic is particular challenging within affordable housing.

All affordable housing properties decline in economic efficiency over time

It’s the inevitable result of expiring subsidies, regulatory changes, and economic conditions. Affordable housing assets are active investments, and periodic reinvestment is essential for maintaining maximum benefit for both owners and the residents who live there. But recapitalizing can be a difficult process, with many financial and regulatory roadblocks.

The main problem is not finding financial options, but choosing the most effective

Financing programs abound for residential properties. The options can be bewildering. Which program, or programs, the owner chooses can have potential long-term financial consequences and may even affect the residual value or disposition strategy when it comes time to sell. Making the right choices requires expert knowledge of the financing requirements and alternatives, familiarity with local housing market conditions and opportunities, and experience with all possible sources of debt and equity.

Recap can effectively structure, negotiate, and close recapitalization transactions

Recap has successfully recapitalized hundreds of residential properties since 1989, including assets in 44 states, the District of Columbia, and Puerto Rico, nationwide.

Service elements

  • Project feasibility analysis including timing and sequencing issues
  • Due diligence coordination and management
  • Identification, analysis, and thorough comparison of potential debt sources
  • Negotiation of loan terms and financing commitment
  • Preparation of proposal to key stakeholders for approval, as required
  • Transaction closing

Public housing revitalization

As a specialized form of affordable housing recapitalization, Recap helps housing authorities nationwide turn public housing into real estate assets. In the same way that tax credits have transformed the private affordable housing market, new changes in approach are changing the way states and municipalities are approaching the management of their own multifamily housing. Many of these properties have been neglected for decades. Now, with Recap’s assistance, public housing authorities are revitalizing these communities and providing new sources of financing.

Public housing revitalization service elements

  • Strategic planning and management for HUD’s required transition to asset management
  • Project-based budgeting
  • Portfolio assessment
  • Development of a portfolio action plan
  • Structuring and executing transactions