Rhyne Brown
Scope of Service Experience Rhyne Brown is an Executive Vice President of NAI Global and leads NAI's Special Asset Solutions team, providing clients with a single point of access to NAI's comprehensive range of real estate services. NAI's Special Asset Solutions team provides a full range of services including property management, asset management, leasing, project management, auctions, real property and note sales. Education Mr. Brown is a honors graduate of the University of Maryland, with post graduate work there, as well as at the Massachusetts Institute of Technology and Georgetown University Law School. Background & Experience Prior to joining NAI in 2000, Mr. Brown was CEO of Lease Audit Analysis Services, Inc., in Washington D.C., a specialist in the forensic auditing of commercial real estate operating expenses. For lease audit consulting, Mr. Brown's clients have included IBM, The World Bank, First Union Bank, Bank America, PNC Bank and many others. He has also held the position of principal of Thomas R. Brown & Associates, a land planning and development consulting practice specializing in development feasibility analysis. In his 35 years in the real estate industry, he has worked for the U.S. Department of Housing and Urban Development and the Montgomery County, MD. Department of Housing and Community Development. Mr. Brown is also an active investor and principal in various real estate holdings. Professional Affiliations & Designations NAIOP American Bankers Association Significant Transactions Mr. Brown has represented clients in the acquisition or sale of over one billion dollars in real estate in his 35 year real estate career. Major NAI projects include work for DHL, Starwood Hotels, Sodexho, International Paper and 30 other international business firms. Mr. Brown has special expertise in representing banks and investment firms selling distressed assets including REO and notes.
Posts by Rhyne Brown
NAI Update from IMN (Chicago)
Oct 12th
NAI Global’s membership were represented by Executive Vice President, Rhyne Brown and Senior Vice President, Tim Buss of the NAI Global Special Asset Solutions team at the Information Management Network (IMN) meeting in Chicago on October 9 – 10. The event – Bank & Financial Institutions Special Assets – Executive Conference on Real Estate Workouts was attended by over 350 real estate professionals representing Banks, Federal Agencies, Attorneys, Special Servicers and industry service providers. Tim Buss moderated a panel discussion on current macroeconomic issues affecting commercial real estate. In addition to NAI Global a strong contingent from NAI Farbman attended, including Andy Farbman, Todd Szymcak, and Michael Kalil. The general feeling of the attendees is we are about half way through the repositioning of the severely distressed commercial real estate cycle in the United States. Most see 2013 as a year of slow economic recovery with a wary eye on Europe and increased federal regulations taking effect resulting from new regulations stemming from the Dodd-Frank amendments. Special recognition and appreciation is extended to NAI Farbman for hosting a dinner for over twenty attendees, including five members of the C-III Asset Services group based in their Chicago office as well as attendees from Wells Fargo, US Bank and others. Rhyne, Tim and the NAI Special Assets Solution Group see ongoing opportunities for the network in 2013 to help the United States in its economic recovery.
NAI Attends IMN Chicago Oct 9 - Oct 10
Preventing REO Stack
Mar 23rd
In 2011 banks and special servicers continue to see growth in the number of foreclosed commercial properties. This despite a dramatic shift of money center banks to sell notes on distressed debt as opposed to directly foreclosing and dealing with the legal mess, the cost and the time requirements to take possession of defaulted real estate. In 2010, one of our special servicer clients sold about $ 3 billion in commercial property in the U.S. Problem was $9 billion of new REO came in the door during the same time period. All these assets came from banks. How can those responsible to sell these assets accelerate the rate at which property can be sold at the best price?
One idea is for banks and others to invest in “Pre-Diligence,” a term coined by the NAI Global Special Asset Solutions team. Today More >
Midterm Elections to Impact Real Estate Recovery
Oct 26th
The midterm elections may have a big impact on the real estate recovery. At the American Bankers Association meeting in Boston a member on the right leaning CATO institute stated that if the Republicans take Congress in November the Republicans will pass a resolution in short order to force both Freddie and Fanny into receivership. The potential for significant change in the residential and multifamily financing structure of the United States is very possible. For over 30 years these quasi governmental organizations have been a core feature of the American financing landscape for single family and multifamily homes in the U S.
The current situation of poor balance sheets for both organizations has resulted in the loss of Republican confidence in both organization and if either are forced into receivership the only sure bet will be disruption to the marketplace.
-Rhyne Brown
Rhyne Brown is Executive Vice President of Client Development and leads NAI Global’s Special Asset Solutions group, a professional real estate practice that is focused on meeting the needs of banks and special servicers active in managing distressed assets and REO. www.naiglobal.com/sas
Missing Details in Foreclosures can be Costly
Aug 4th
NAI Global is very active in helping banks sell distressed assets. Most observers would agree in the last 20 years United States banks have become more complex. Lines of business have grown; transactions have become increasingly complex with multiple borrowers with divergent interests; multi-tiered loan structures became common and crafty lawyer inspired special provisions are sprinkled in here and there. During the same time period, however, commercial real estate transactions have also become far more complex. The complexity of transactions is a significant management problem in and of itself. Information overload often forces bright, hard working bank employees to make mistakes just because the time or experience is not available to fully understand the details of a transaction. More >
Real Costs to Banks to Foreclose on Commercial Real Estate Assets
Jun 4th
The Joint Economic Committee of Congress has calculated that the average foreclosure costs for a single family home in the United States is $77,935. While there is no comparable national statistic for commercial assets the author is aware banks understand that the cost to carry an asset plus the cost of lawyers, brokers, appraisers, property managers, asset managers, security, landscapers, taxes, insurance and eventually the costs associated with selling a commercial property at the end of the day is very substantial.
The NAI Special Asset Solutions group has however reviewed in some detail the costs to take 15 commercial real estate assets, each with estimated cash market values of between $3 million and $5 million, from decision to foreclose to final disposition. The properties we reviewed were in a variety of asset classes (specifically – retail, office, multifamily and industrial assets). The general result was a range of between 25% and 30% of the estimated current (2Q – 2010) all cash value of the asset as of the date of foreclosure. A $4 million property can therefore cost between $1 million and $1.2 million to take ownership of the asset by foreclosure, operate it and sell it. More >
