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Development and Construction Division
MKA began collaborating with DCC's team in 2001 on real estate developments. In early 2008, MKA extended its relationship
with DCC to become a formal partnership whereby DCC now acts as an in-house service provider on MKA's projects.
As such, DCC gives MKA unique capabilities and advantages over its competitors because it significantly expands MKA's
in-house resources for originating, underwriting, servicing and working out impaired loans. MKA believes that
these advantages are amplified during difficult market environments such as today when real estate properties
are more likely to be distressed and need to be closely examined and monitored to determine the best strategy
for maximizing their potential return.
DCC's capabilities add significant value in the following primary situations:
- Upon review of a potential investment, DCC is able to review and determine the economic prospects of the subject development quickly. DCC's rapid response capability reduces the turnaround time on a loan's underwriting, execution and funding, which provides an advantage against competitors that lack similar capabilities. In addition, the quality of the review has significantly greater credibility because DCC can leverage its own development expertise and local market knowledge to analyze the critical factors of the project to determine whether it is likely to succeed or fail.
- DCC is able to analyze properties and reposition them as needed to attempt to maximize returns upon exit. While other lenders are restricted to financial and legal remedies when working out a troubled development, MKA can use DCC in a value-added manner to rezone, reposition, build out and/or lease and market a project to maximize its yield. With their collective local market experience and focus, MKA and DCC can initiate the critical improvements that seek to drive the highest value for the property. This partnership allows MKA to maximize its recoveries more effectively than its peers.
- DCC is able to assume the general contractor and construction management roles on a project through completion in circumstances when doing so is appropriate to maximize the return on MKA's investment. DCC has deep knowledge and experience with subcontractors throughout its target markets, and can utilize those that it believes are most appropriate for each project.
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