PenTrust Real Estate Advisory Services, Inc.
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Investment Servicing

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Investment Analysis

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PenTrust underwrites real estate investments including construction and permanent first mortgage loans, equity participating first mortgage loans and limited partnership interests and investments. Investments underwritten for the ERECT Fund require new construction or substantial renovations. During the construction phase of an ERECT Fund project, PenTrust works with the local union building trades and contractors to monitor each project to ensure that it is completed using required construction standards and requirements. After the completion of construction, PenTrust oversees and monitors the performance of each property through its project servicing department.

To identify potential investments, PenTrust will:

  • Request and analyze financial information on project and determine if project meets investment criteria.
  • Draft term sheet and submit to borrower/partner. Negotiate terms and conditions of deal with borrower/partner.
  • Prepare application/letter of intent based upon negotiated term sheets and collect applicable fees.
  • Complete submissions including appraisal information, sensitivity analysis, lease analysis, tenant credit worthiness, borrower or partner financials, neighborhood and local economic and demographic information, industry information, and construction costs analysis.
  • Initiate closing process on approved transactions. Arrange third party reports such as appraisals, environmental reports, engineering reports, title updates, insurance and engage attorneys to prepare legal documentation and coordinate the closing process.
  • Review and negotiate all legal documents.
  • Review, analyze and request revisions if necessary, on all third party reports including appraisals, environmental reports, and engineering reports.
  • Prepare all necessary items as required per the closing agenda.
  • After closing, review and summarize leases, analyze terms of leases compared to underwriting and market criteria, review periodic project operating statements, review annual project budgets, analyze credit worthiness of tenants, prepare investment stability analysis, and analyze and recommend solutions for all proposed requests from the transaction participants.
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