A LEADING FORCE IN REAL ESTATE

Real Estate

Hudson Advisors offers U.S. residential real estate investment management and a wide range of commercial and residential real estate underwriting and asset management services to sophisticated investors, including private equity funds and financial sponsors.

Since 1995, Hudson has managed more than $102 billion in cumulative commercial real estate assets; since 1995, the firm has underwritten more than $476 billion in cumulative global commercial real estate assets.

Our experience spans the globe – having managed more than 124,000 cumulative CRE assets across the United States, Europe, and Asia-Pacific, particularly in Japan. Hudson’s real estate team has extensive expertise in underwriting, managing, financing, developing, leasing, and selling real estate assets and portfolios.

We approach every client asset with a singular focus: to extract maximum value. Beyond running the numbers, we ask the tough questions, consider all angles, and challenge ourselves to evaluate every possible scenario. We practice a bottom-up, feet-on-the-ground approach that enables us to understand the full potential – and possible pitfalls – of every asset we manage.

Across asset classes that include U.S. single-family rental (SFR), residential and commercial real estate-secured loans, CMBS, RMBS, performing loans and direct real estate in both the primary and secondary markets, we are thorough, experienced, bottom-up underwriters with extensive strategic asset management capabilities.

Our extensive underwriting capabilities involve a comprehensive approach to due diligence, valuation, and all the steps necessary to confidently assess the potential risks and rewards of acquiring a particular asset or portfolio of assets. We are comfortable with complexity – and experienced in recommending realistic capital investments based on the market, on feasibility, and on cost. We act in – and are an advocate for – our clients’ interests, and ensure we provide thorough analysis on every potential transaction.

Single-Family U.S. Residential
Real Estate Asset Management

Hudson Homes

Single-Family Rental
Since 2008, Hudson has developed a deeply integrated U.S. residential real estate platform, with strong capabilities in SFR investment management, acquisitions, property management, financing and disposition, aided by Hudson Homes Management, Hudson’s integrated residential real estate property management platform.

Hudson Homes Management, a wholly-owned subsidiary of Hudson Advisors, is a vertically integrated service provider and manager of single-family homes and other types of residences within the U.S. Hudson Homes seeks to provide institutional-quality services across a spectrum of clients and stakeholders, including owners, major government-sponsored entities (GSEs), tenants, and real estate brokers.

Together, the Hudson and Hudson Homes SFR platform provides:

  • The benefits of Hudson’s deep experience – more than a decade of U.S. residential real estate-related experience in both debt and equity
  • The capability to source, underwrite, and acquire SFR assets individually or in portfolios by leveraging multiple acquisition channels, along with access to significant capital resources
  • Strong capabilities in financing and securitizing U.S. residential-related assets
  • Large-scale, technology-led residential real estate operating capability with a broad, national footprint

Read More About Hudson Homes here.

Underwriting

We are thorough, bottom-up CRE underwriters – and our global experience and platform offer true competitive advantages. Over the last 25 years, we have evaluated asset volumes totaling more than $476 billion around the world, including in:

Americas

More than $167 billion of CRE underwriting volume; broad experience in both tertiary and major markets and across all major asset classes

Europe

More than $225 billion of CRE underwriting volume; deep knowledge of a diverse region

Asia-Pacific

More than $84 billion of CRE underwriting volume; more than 20 years of investment experience in Japan

Asset Management and Servicing

We are an experienced manager of CRE assets – having managed more than 114,000 cumulative assets totaling more than $101 billion across the U.S., Europe, and Japan. These assets span hotels, REITs, office buildings and complexes, multifamily housing, industrial plants, golf courses, mixed-use, and retail properties across the capital stack.

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Our CRE asset management services and capabilities cover the life cycle of acquisition, management, portfolio management, and disposition, with a strategic emphasis on business plan execution, oversight, portfolio management, financing, and, if applicable, sale or disposition. We also provide real estate tax assessment advisory services.

We are experienced in providing financing solutions for commercial real estate transactions. The team has closed more than $17 billion in financing for the purchase of both real estate debt and equity collateral, in all major property types. Along with mortgage and mezzanine loans, financings have also been structured as warehouse lines and repurchase obligations, each tailored to specific investment objectives.

Since 2008, Hudson has acted as a special servicer on a cumulative total of $9 billion of commercial real estate debt assets, including non-performing, sub-performing, and credit-challenged loans, and has provided oversight of master servicers in commercial real estate as well.

Hudson also has significant experience in providing oversight of other servicing companies, including firms focused on residential mortgage servicing and workouts, whether driven by the operational or regulatory needs of its clients.

In North America, since 2008, Hudson has successfully managed more than $23 billion of commercial real estate assets, including office properties, hotels, multi-family housing, loans, and CMBS trusts. In the U.S., Hudson is the named special servicer for three CMBS transactions containing 57 loans totaling $1.2 billion in unpaid principal balance.

In Europe, since 2000, Hudson has managed more than €41 billion in commercial real estate assets, including €32 billion of assets since 2010. Transactions have spanned granular properties to the largest office building (€1.8 billion) in Europe. As of December 2020, Hudson manages, directly or through management oversight, a portfolio of assets in Europe totaling more than €20.5 billion, including commercial and residential mortgages, direct real estate, and investments in operating companies and banks.

Hudson is able to provide servicing solutions for clients that own loan portfolios collateralized by commercial or residential real estate, corporate exposures, and other asset classes, and can service many different types of securitization structures.

Hudson monitors and seeks to achieve the client’s specific goals and objectives (e.g., IRR, capital return multiple), which may themselves evolve over the life of an investment.

Hudson prides itself on efficiency, professionalism, and seeking optimal outcomes for all stakeholders. We engage with borrowers professionally and with a commitment to resolve challenges sensibly based on sound underwriting, market data, and clear communication.

Special servicing operations consist of loan asset management, REO asset management, and servicing and surveillance. Hudson has approximately 90 asset managers with an average of more than 16 years of industry experience. As of Q1 2021, the non-CMBS portfolio managed by Hudson totaled 43 assets with unpaid principal balance of more than $1 billion.

Loan Asset Management

Hudson can manage all non-performing and sub-performing assets in a portfolio. We are experienced in managing both securitized (CMBS) and balance sheet assets. Our operation includes dedicated recourse pursuit personnel to collect on deficiencies and unsecured loans.

REO Asset Management

Hudson can manage all REO assets in a commercial real estate portfolio. Our product specialists provide expertise on specific asset types, including hotels and multi-family housing. Our dedicated capital projects team oversees all construction projects. (For residential servicing solutions, click here).

Asia Pacific

Hudson oversees outside servicers’ activities and provides surveillance of performing loans to identify potential risks and opportunities across the portfolio.

Hudson’s operations in both the Americas and Europe are rated as a CMBS Special Servicer by two global ratings agencies.

Property Tax Management
and Consulting

Hudson works with owners of diverse real estate holdings around the world to help ensure precise payment of property taxes. Property taxes are often the most significant operating expense for businesses whose operations rely on commercial real estate, such as food and other retailers, hotels, factories, and multi-family housing.  Hudson works with clients to understand and due diligence the full spectrum of property taxes prior to acquisition; file tax appeals and provide case management for existing portfolios; analyze property tax liability in connection with dispositions; evaluate transfer taxes; assess and comply with business personal property tax requirements; and process and track tax payments.

Hudson’s property tax offerings include the use of a comprehensive, proactive system that tracks tax bills, conducts tax bill processing and verification, and can even facilitate client payments internally through the tracking system or externally via bill payment vendors selected by the client.

Hudson is also able to consult with clients on cost segregation, tax credit and incentives opportunities, and economic development incentives.

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Property taxes often constitute the largest single operating expense for businesses whose operations rely on commercial real estate assets.  Hudson provides owners and managers of commercial real estate assets with expert advice, attention, and comprehensive support services throughout the entire life cycle of an asset.  Our comprehensive property tax offering involves the following components:

Pre-Acquisition Due Diligence, including

  • 2-year to 5-year estimated value and tax projections
  • Reassessment risk and liability
  • Tax verification of total parcels and property variables
  • Tax rate verification and trends
  • Value and tax rate assumptions
  • Sales price disclosure requirements in specific jurisdictions, including requirements regarding the allocation of sales price among land, improvements, enterprise value and other categories

Appeals and Case Management for Portfolios, including

  • Evaluating annual assessments and making appeal recommendations when appropriate
  • Filing timely appeals supported with the required documentation
  • Reporting on appeals in process and analyzing decisions for further remedy
  • Tracking refunds
  • Auditing and documenting payment of tax bills
  • Forecasting tax liability; budgeting and accrual reports

Transaction Price Segregation / Transfer Tax Planning, including

  • Evaluating and allocating the transaction price and any corresponding transfer taxes in a commercial real estate transaction among real property, personal property, and intangible assets

Disposition, including

  • Providing analysis on how potential buyers may underwrite commercial real estate assets
  • Evaluating the asset owner’s negotiating position by estimating the projected sale price that may ultimately be realized by a potential buyer upon exit from the investment after deduction of applicable transfer taxes

Transfer Tax Services, including

  • Determining exactly what is and is not subject to transfer tax

Business Personal Property Appeals and Compliance, including

  • Providing unique business personal property tax (known as “tangible assets” in some locations) minimization solutions for niche industries

Tax Payment Processing, including

  • Comprehensive, systematic, proactive tracking and processing of standard tax bills, supplemental bills, and refunds
  • Conducting tax bill processing and verification
  • Make payments internally or via bill payment service.
  • Processing and approving tax bills to generate transmittal documents.
  • Generating in-lieu-of tax bills based on parcel value and jurisdictional data.
  • Tracking discounts and installments for each tax bill, as well as payments to date.

Cost Segregation, including

  • With the assistance of outside advisers, facilitate efforts by clients to leverage this commonly used, strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded or remodeled any kind of real estate to optimize cash flow by accelerating depreciation deductions and deferring federal and state income taxes when appropriate

Tax Credit and Economic Development Incentives, including

  • Identifying tax credits and incentives available to companies
  • Identifying public-private partnerships that may be available to offset long-term and short-term costs associated with prospective projects, asset purchases, and corporate site selection

Our Services

Financial Markets

Hudson Advisors offers a wide range of risk management, capital markets advisory, and credit/asset finance solutions to financial sponsors, companies, and sophisticated investors.

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Private Equity

Seasoned professionals who know how to direct highly capable management teams to deliver successful outcomes for investors.

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Real Estate

Hudson Advisors offers a wide range of real estate underwriting and asset management services to sophisticated investors.

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