Real Estate

Financing

DRA provides authoritative and comprehensive expertise for all phases of real estate financing. These include both construction and operating sources: construction debt, mezzanine debt, equity, credit enhancement, subordinated debt and other forms of project financing.

DRA Principals have advised on more than $10 billion of project financing for real estate projects and portfolios.

DRA excels at conducting competitive bids on behalf of both developers and public agency sponsors for all forms of development finance. This includes construction financing, permanent financing, debt, equity, credit enhancement and other provisions. DRA’s competitive bid process routinely results in best market pricing, terms and conditions for these critically important components of project financing. DRA’s bid process not only addresses rate, fees and standard terms, but focuses on questions associated with recourse, collateral, credit enhancement, prepayment penalty, guarantees, and special terms associated with default, conversion and other provisions associated with complex project financings.

FHA Defaulted Multifamily Portfolio

DRA served as financial consultant to the Federal Housing Administration in assessing the mark-to-market value of its $1.1 billion defaulted multifamily loan portfolio.

Pomeroy Apartments, Chicago, Illinois

DRA served as financial consultant to the Chicago Housing Authority in its capacity as developer for the Pomeroy Apartments in Chicago. Pomeroy Apartments is a substantial rehabilitation senior development on the upper north side of Chicago. Complex project financing included construction and permanent debt, Low Income Housing Tax Credits, Investor Tax Credits and Modified Accelerated Cost Recovery System depreciation, renewable energy systems associated with wind and solar photovoltaic, as well as high value energy efficiency retrofit measures. Additionally, DRA’s financial analysis services included restructuring of Project Based Vouchers for ongoing subsidy of extremely low income residents in this landmark rehabilitation.

Atlanta Transit-Oriented Development Projects

DRA analyzed the effects of selected federal finance policies on smart growth development for three mixed use, transit-oriented development (TOD) projects in the Atlanta metropolitan area. These projects are located in the central downtown urban area, the fringe of the downtown, and a mature first suburb, respectively. Through market research and extensive interviews with area developers, DRA prepared a pro forma cash flow analysis modeling the income, operating costs, development and financing costs of each of the three case study projects. Internal rates of return were calculated for both pre-tax and after-tax project cash flows to determine feasibility and measure the effect of the federal finance policies analyzed under a variety of scenarios.

DRA presented its findings of each prototype and financing scenario to DOT, HUD, EPA, OMB and the Obama White House Office of Urban Affairs.