• Clients benefit from IMA LLC’s experience when evaluating:
    • new investments
    • portfolio acquisitions
    • new ways to address portfolio assets that are facing challenges or unexpected problems
  • IMA LLC’s ability to help a client is based on IMA LLC’s experience with structuring complex transactions and providing portfolio services for complex investments.
  • After analyzing financial, accounting, and operating information, IMA LLC can tailor solutions that meet a client’s objectives.

Examples of Advisory Services

Option Sale related to Power Generation Assets

PROJECT:

85MW gas-fired cogeneration peaking unit and related steam host operations. Original Cost $65 million. Facility was a FERC approved Qualifying Facility. The facility had problems with generation efficiency and faced questions about long-term viability.

WORK SCOPE:

Prepared evaluation of client’s position relative to the Lease and sub-Lease. Identified specific QF and engineering concerns. Led negotiations with IPP and power marketers interested in acquiring only the power generation assets. Managed process to prepare QF steam host operations for auction.

RESULTS:

Completed option sale for client that eliminated book residual, provided for immediate book income enhancement, eliminated risk from negative impacts related to QF status, achieved lender consents (at no cost to client), and maintained client’s long-term value from the steam host operations.

CONCLUSION:

Retained by client to implement renegotiated agreements, monitor facility operations, and report regularly on the credit of the Lease guarantor. IMA LLC represented the Owner at the eventual exercise of the Lessee’s purchase option. Exercise of the purchase option resulted in the sale of the assets. IMA LLC works for this client on other assets in its current portfolio.

Acquisitions of Excess Land / “Brownfield” Sites

TARGET:

Former industrial properties either with, or without, environmental issues. In a “brownfield” sale, the Seller is required to guarantee a level of remediation that will comply with requirements of the state EPA (or other environmental regulatory entities) to achieve a No Further Action (“NFA”) status for the property.

WORK SCOPE:

The investment criteria requires the land is feasible for “re-purposing” or re-development opportunities. Opportunities need to be compelling and will usually include government incentives. Examples of re-purposing include: ground mount solar PV; re-development using Economic Development Zone classification; New Market Tax Credit Allocatees; etc.

RESULTS:

IMA LLC currently pursuing opportunities for both Sellers and Buyers.

CONCLUSION:

Special purpose entities related to IMA LLC have acquired specific properties for redevelopment and “re-purposing” since 2014. Successful redevelopment projects include sites used for solar PV generation and for light industrial businesses.

Work-Out of Early Stage Development

PROJECT:

Client had funded a Developer to renovate and restore 16 historic mill buildings (Philadelphia, Pennsylvania). Original goal was a mixed-use real estate development.

WORK SCOPE:

Developer failed to perform and initiated steps to file for Chapter 11 protection. When IMA LLC stepped in, the client faced a total loss of its $17.5 million equity investment within 90 days. IMA LLC recruited and led a team of engineers, environmental professionals, redevelopment advisors, historic tax consultants, lawyers, and local experts (including real estate tax adjusters). IMA LLC developed alternatives for the Owner. IMA LLC led negotiations with holders of first and second mortgage notes, and coordinated the lawsuit to collect against the Developer’s guarantees.

RESULTS:

IMA LLC oversaw and supported all recovery efforts for client. Recoveries included: (i) $8.5 million in cash from default litigation against the Developer; (ii) $5.5 million in historic rehabilitation credits from the NPS; (iii) eliminating a $16 million first mortgage; (iv) reducing claims from contractors and vendors and settling claims. Property was repositioned and sold for a gain.

CONCLUSION:

By rapidly evaluating the principal challenges and implementing a decisive strategic response, IMA LLC helped our client maximize its recovery in the midst of a cyclical downturn in the market for speculative real estate.

Opportunities with “Orphaned” Assets

PROJECT:

Arrange dispositions, as well as acquisitions, of orphaned assets from investors’ portfolios. Examples include the purchase of 7 operating billboard licenses and 5 acres of excess commercial land. The billboard and land assets were legacy assets related to a much larger acquisition (2006) by a client. These assets were considered “orphans”, and a new opportunity fund purchased them.

WORK SCOPE:

IMA LLC analyzed opportunities to sell or donate the land parcels. Renewals and license extensions for the billboards were administered by IMA LLC.

RESULTS:

In less than 36 months 100% of capital invested in land and billboards was recovered. Going forward, the new owner expects unlevered cash flow will provide significant IRR during a projected 10-year hold period.

CONCLUSION:

IMA LLC is pursuing opportunities to advise other prospective Buyers or Sellers.