Builders Protection Group Introduces Distressed Property Program
Builders Protection Group, LLC (BPG) announces the launch of a new package of services aimed at addressing the growing market for distressed residential multifamily or tract developments. Builders Protection Group, LLC’s distressed property offering is designed to help the various participants in property turnaround situations to manage the resolution of the projects, and hopefully even unlock some of the potential value in these deals.
As the current building downturn continues, many projects that are either complete or under construction are changing ownership due to financial difficulties. Whether these projects are being assumed by banks or sold to private investors, the liabilities that are inherent in residential real estate development, primarily from homeowners and construction defect claims, continue. In many cases, these liabilities are being amplified as the changes in ownership may cause insurance policies that were in place to be invalidated. Combined with the possible lack of continuity in construction management and customer service the new owners of projects face substantial exposure.
Aimed primarily at financial institutions, receivers and private investors, BPG’s distressed property offering is designed to help manage these risks. This offering is customized to the needs of each particular project based on the stage of the project, status of insurance coverage and goals of the project’s current owners. BPG can help financial institutions understand the status of a project and then develop a program to manage those risks or implement a program that will make the marketing of the project easier by alleviating some of the risks faced by potential buyers. For potential acquirers, the distressed property program can help them understand the status and risks of a project and then develop a program to manage those risks.
BPG can assess the current status of the project through inspections, construction and due diligence assessments. BPG can then implement a homeowner care program that includes homeowner turnovers, punch list management, limited warranty and manuals and post-sale customer service. For projects that are still under construction, BPG can work with insurance carriers and brokers to administrate a new OCIP wrap program.
About Builders Protection Group, LLC
Builders Protection Group, LLC (BPG) is a comprehensive advisory service and strategic risk management firm that provides risk mitigation and consultation services to residential, mixed-use and commercial real estate developers. BPG works with insurance carriers and brokers to help developers manage the risks associated with real estate development. Our complete package includes OCIP wrap insurance administration, quality control programs, plan review, field observation and inspection, photo documentation, outsourced homeowner customer service and limited warranty with manual design and preparation.
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