The document discusses loan modification and workout services provided by 1st Service Solutions including: restructuring loan terms, waiving penalties and fees, forbearance on requirements, collateral substitutions, and adding mezzanine debt. It also discusses loan workout consulting services for maturing loans, formulating alternative strategies for non-performing loans, and creative exit strategies. It advises contacting them as soon as possible for troubled assets and offers their services through LandAmerica at competitive pricing.

1. Loan Modifications:
Restructuring Existing Loan Terms
Waiver of Accumulated Penalties & Fees
Forbearance of Covenant Requirements
Collateral Substitutions
Addition of Mezzanine or other
Subordinate Debt
Loan Workout Consulting:
Extension of a Matured Loan
Formulation of Alternative Workout Strategies
on Non-Performing or Sub-Performing Loans
(Including Loans Subject to Bankruptcy &
Litigation)
Creative Exit Strategies Including Collateral
Releases, Substitution of Collateral
When to Contact Us:
As Soon as Possible
Dont Wait Until it’s Too Late
Pricing Structure:
Flat Engagement Fee
Hourly Rate on Work Performed
Troubled Asset Solutions
1st Service Solutions, Inc. is the sole provider of all Troubled Assets services. All contracts for Troubled Assets services will be negotiated and signed by the client and 1st Service Solutions, Inc.
As a commercial real estate property owner the last place you want to find yourself when
experiencing a problem with your asset is that situation where you have no options available to
negotiate an outcome that is mutually beneficial for you and your capital partners.
Troubled assets can manifest themselves as a result of an owner’s limited resources (financial and
human), catastrophic events, credit crunches, emotional attachment and a host of other
influences that can turn a sound investment into a significant liability. Engaging a professional
that can independently and proactively analyze your troubled asset, offer strategic solutions while
becoming your advocate, can mean the difference between keeping your asset, and losing it.
LandAmerica now offers this important service of designing solutions for troubled assets
available to our clients through nation-wide preffered vendor, 1st Service Solutions, Inc. With
an excess of 55 years of collective experience in trouble asset management and resolutions
within the commercial real estate arena, the staff of 1st Service Solutions, Inc. can offer you
alternative strategies and solutions that are tailored to keep the keys to your property in your
hands and away from your creditors.
For more information, please contact:
LandAmerica Assessment Corporation
1920 Main Street, Suite 1200
Irvine, CA 92614
(866) 535-5791
www.landam.com/lac
Troubled Asset Solutions available Nationwide through 1st Service Solutions, Inc. , include:

2. Troubled Asset Solutions
Case Study 3
Case Study 4
General overview
Three CMBS loans with principal balances totaling over $30MM secured by three multi
family complexes in Colorado Springs experienced adversarial impacts to occupancy, rent
rates and required major concessions as a result of job losses created by the economic reversal
of 2001, historically low interest rates causing flight from apartments to single family
residences, and massive troop/family displacement caused by the conflicts in Afghanistan and
Iraq.
Overview of problem
For two years, the properties all had a negative cash flow and the borrower contributed over
$1.5MM to keep the loan current. In the meantime, maintenance on the property suffered
and the overall property values were declining. The borrower placed the properties on the
market and also attempted to refinance. The existing loans had large prepayment premiums
which would make it near impossible for the borrower to sell or refinance given the condition
of the market.
Resolution outcome
The borrower ultimately did sell the properties and successfully negotiated a reduced
prepayment premium amount which allowed for a full payoff of the debt. The CMBS Trust
had a more favorable outcome than if the sale and ultimate payoff of principal had not
occurred.
General overview
A CMBS loan with a principal balance in excess of $13.0MM secured by a 328 unit
apartment complex located in the upper mid-west, experienced a drop in market value prior
to identifying an acceptable buyer that could assume the loan. The drop in value was
significant enough that the purchase price was lower that the outstanding dept.
Overview of problem
After the Seller had identified a buyer the property was only 75% occupied with a DSCR of
.70. To further complicate the properties performance problems the Seller faced significant
tax penalties if a quickly approaching closing deadline was not meet due to the property
being involved in a reverse 1031 exchange. The Seller would have suffered significant losses
throughout their portfolio if they failed to meet the reverse 1031 deadline.
Resolution outcome
The Lender approved the assumption and at the time of closing agreed to allow the Seller to
deliver the total sum of: (a) the difference between the outstanding debt service due under
the Existing Mortgage as of the Closing Date and the amount of the Purchase Price and (b)
the difference between the total amount of accrued interest due on the outstanding principal
balance of the existing mortgage: as determined on a monthly basis from the Closing Date
through the maturity date of the Existing Mortgage and the total amount of accrued interest
that would be due on the outstanding principal balance of the Existing Mortgage as
determined on a monthly basis from the Closing Date through the maturity date 'of the
mortgage.
For more information, please contact:
LandAmerica Assessment Corporation
1920 Main Street, Suite 1200
Irvine, CA 92614
(866) 535-5791
www.landam.com/lac

3. Troubled Asset Solutions
Case Study 1
Case Study 2
General overview
A CMBS loan with a principal balance in excess of $10.0MM secured by a class B high rise
office in the upper mid-west, experienced two significant blows within six months of
maturity: (1) local economy issues enticed the largest tenant to take advantage of a declining
real estate market and purchase its own building at a substantial discount; and (2) macro-level
impacts associated with the credit crunch eliminated any form of viable take-out financing.
Overview of problem
From the inception of the loan (approximately 10 years) the collateral property typically
operated at a DSCR exceeding 1.5x, with occupancy hovering in the 90.0% range. With the
advent of the credit crisis and the lack of tenant base, the borrower faced receivership and
foreclosure on its property unless it could take out the existing loan upon maturity. The
partners were willing to contribute additional capital to pay down a portion of the principal
and fund additional reserves for future lease-up costs in order to re-tenant the site and make
it more financeable.
Resolution outcome
Successfully negotiated a one year forbearance of the loan maturity with default interest
accrued and forgiven at the time the loan is refinanced. Borrower remained in control of the
site with the ability to enhance the property’s value, thereby offering a new lender a more
attractive form of collateral.
General overview
A CMBS loan secured by a retail center was maturing in late 2007. The borrower was in the
process of a refinance when two significant events outside of their control occurred: (1) two
large tenants closed their stores and one filed for bankruptcy, and (2) the lender offering the
refinance could not deliver on their commitment due to the market changes at that the time.
Overview of problem
The borrower was less than a month away from a maturity default with no where to turn.
Resolution outcome
The CMBS Servicer agreed to an extension with a modest fee at reasonable terms
For more information, please contact:
LandAmerica Assessment Corporation
1920 Main Street, Suite 1200
Irvine, CA 92614
(866) 535-5791
www.landam.com/lac