RCS Advisory Engagement Examples
Issue/Opportunity
Issue: A major P.E. fund acquired a well-known aircraft manufacturer with numerous manufacturing plants around the U.S., most associated with an airfield. Urbanization since WW II had significantly increased the value of these airfields. The P.E. fund wished to consolidate operations and realize the increased, unrecognized land value.
RCS Role
Response: RCS proposed new, alternative uses for the airfield land. As a result, aircraft production facilities were consolidated, some manufacturing facilities were closed and airfield and plant land was transitioned into urban/suburban uses and monetized.
Issue: An international consulting firm landed a business strategy engagement for a real estate development firm in Saudi Arabia. The Client wished to expand its home building company in the Kingdom and better understand the issues and opportunities in master planned communities.
Response: RCS provided real estate subject matter expertise. Travelling to the Middle East as a key team member, RCS played a significant role in the multi-day presentation and brainstorming meetings with the Saudi Arabian executives and their investment bank.
Issue: The FDIC wished to examine the lending and investing practices of numerous banks that had failed during the 2008 global financial melt-down, to determine if the banks’ real estate lending and investment practices were the primary reasons for the failures.
Response: RCS evaluated the lending practices in question. The Firm’s analyses and advice played a key role in the FDIC’s decisions regarding the pursuit of claims associated with the directors’ and officers’ Errors and Omissions insurance policies
Issue: A consortium wished to form a large leased income property investment fund in Colorado.
Response: RCS provided advisory services, assisted with the fund’s unique investment structure, worked with the Client’s security lawyers to write a private placement memorandum and assisted with oversight of the placement of the fund’s interests both with institutional investors and broker dealers.
Issue: A major, international investment bank was retained to sell a large mountain resort. The bank, familiar with the pricing and underwriting of the income assets but struggling with the development land, needed a concise characterization of the resort’s development opportunities for their offering document.
Response: RCS researched the physical land capacities and entitlement issues, conducted product market research, developed conceptual land plans and architecture and ran project-level economic scenarios. RCS’ work product provided potential buyers with an understanding of what might be built, leased and sold on the land included in the transaction.