PROPERTY SITUATION

• The borrower became subject to a debt coverage cash management trigger as a result of tenant related issues due to the economic impact of the COVID-19 pandemic.
• The lender did not provide specified additional gross rental income during initial test calculations causing default.
• Lender proceeding to implement cash management account prior to clarification of additional gross rental

BCA RESOLUTION

• Brighton Capital Advisors immediately established communication with senior management at the servicer and delayed commencement of a full cash flow sweep while analyzing the loan documents. This saved the borrower over $750,000 in excess capital from being withheld by the lender.
• BCA examined the loan documents and property financials, identifying 20% of additional income that was not being applied in accordance with the terms of the loan documents.
• BCA assisted the servicer in modifying the interpretation of the loan documents to enable the property to pass the DSCR trigger test.
• BCA also enabled the release of over $220,000 in excess cash to the borrower being held by the lender in reserves.