Time and time again, CLASS has proven to be the perfect complement to interim financing on new acquisitions. A bridge loan may be the perfect lending vehicle to help secure underperforming or unstabilized assets, however it leaves the owner in a precarious situation during lease-up. Many of these properties are experiencing high delinquency rates and the necessary evictions will lead to a huge leasing challenge. When compounded with a bad reputation, owners are finding that nothing short of an all-star staff is capable of stabilizing the asset.
Hiring good people is hard enough on class-A new construction deals. Hiring good people on a neglected property in a secondary market can be next to impossible. Utilizing contract leasing services like CLASS on such properties is a great way to guarantee the lease-up. By deferring the risky hire until the asset is stabilized, the owners are able to drastically accelerate the absorption rate and allow companies like CLASS to establish detailed marketing and leasing strategies for the property. Additionally, the cost of such a leasing service can be financed through the loan itself.