The appraisal is an essential part of the lifecycle of any real estate transaction. For a new acquisition, Leitner Berman provides an independent assessment on the purchase price and helps establish a baseline for acquisition financing options. Additionally, owners rely on valuation when determining whether to refinance and lenders can utilize Leitner Berman’s capabilities in determining their corresponding mortgage terms.
Once the transaction closes and a loan shifts to a lender’s balance sheet, Leitner Berman can provide ongoing valuation to help determine lender liquidity, debt and equity reporting ratios, shareholder equity value, and stock price.
In events of micro-shock (like the 9/11 terrorist attacks in New York City) or larger systemic shocks (the 2008 global financial crisis or the ongoing Covid-19 economic crisis), property valuation is the key factor in understanding financial viability of underlying mortgage financing. In these instances, Leitner Berman will offer clarity on the viability of a specific loan or pool of loans held by a lender or server on behalf of investors in bank, debt fund, or public security like a CMBS or CDO bond. Understanding underlying property values also impacts the value of these distressed entities and may dictate decisions for the bondholders or other financial decision makers.