Newsblast Archive

Q2 2011


CONTACT: David Oldow 617-391-0363

New environmental report “monetizes” environmental risks for CRE loan transactions

Chelmsford, MA— A new environmental due diligence report is designed specifically for buyers and sellers in the secondary loan market. They are called Environmental RoadMapsTM because they “monetize” environmental risk for loan acquisitions, then provide servicing guidance throughout the life of the loan.

Two veteran due diligence consultants developed the RoadMap product after forming their national company, Bell Oldow, Inc., in early 2010. The new reports serve a niche market that needed special report features unavailable until now.

For loan buyers, RoadMaps account for, and provide opportunities to leverage, environmental information to improve pricing decisions. And after loan purchase, RoadMaps are designed to stay with the loan file to provide guidance to master and special servicers.

For loan sellers preparing portfolios for sale, RoadMaps red flag data gaps and environmental issues that create buyer uncertainty, and ultimately price discounts. They also can reduce staff time spent organizing environmental data.

“It’s the new standard due diligence for CRE loan transactions,” says Michael Bell, President of Bell Oldow. “RoadMaps offer three distinct advantages. First, they tee-up risks and costs in an easy-to-read risk rating system. Second, they forecast environmental costs and actions for servicing scenarios down the road. And finally, they paint a sharp environmental picture of the real estate so our clients can make fast, solid decisions.”

“They make buying and selling loans easier and actually, more profitable,” says Dave Oldow of Bell Oldow. “Plus, we give our clients the standardization and convenience they need.”

Click Here for more information about Environmental RoadMaps or call (617) 391-0363.
Q1 2011

Does your environmental due diligence actually help you? Maybe you read old Phase Is, or buy some sort of reviews, or get database reports, or maybe you just wing it. Our survey finds that loan buyers use various methods to account for environmental risks.

Loan buyers pretty much agree on what they would like to know though. Three things stand out. They want to:

  1. Get an overall environmental cost for each loan, to plug into pricing models.
  2. Prepare their servicing team to master service the loan, or work through special servicing options.
  3. Have an easy process that fits their budget.

However you handle environmental due diligence, these days you can get what you want.