Specialty & Situational Advisory

Distressed Asset Review


MX3’s Distressed Asset Review is designed to quickly diagnose underperforming real estate and provide a clear, executable roadmap to stabilize cash flow and restore asset value. We focus on identifying the root causes of cash bleed, whether operational, contractual, or structural, and prioritizing actions that deliver near-term NOI improvement while supporting long-term recovery.

Our review begins with a rapid assessment of asset-level financials, lease structures, operating expenses, and vendor contracts. We evaluate income durability, expense leakage, and recovery compliance to pinpoint where value is being lost. Particular attention is paid to leases, CAM recoveries, utilities, and controllable operating costs, as these areas often represent the fastest path to stabilization.

Beyond diagnostics, MX3 develops a practical turnaround plan tailored to ownership objectives and capital constraints. This includes recommended cost controls, recovery actions, lease enforcement strategies, and operational improvements designed to stop cash bleed and rebuild confidence in the asset’s performance. Where applicable, we align our findings with lender, investor, or special servicer requirements to support restructuring, recapitalization, or disposition decisions.

What We Evaluate:

  • Income performance and lease compliance

  • CAM, tax, insurance, and utility recoveries

  • Operating expense structure and vendor contracts

  • Asset-level cash flow drivers and risk points

  • Near-term stabilization opportunities vs. longer-term value initiatives

What You Receive:

  • Clear identification of cash bleed and value erosion

  • A prioritized, execution-ready turnaround roadmap

  • Actionable recommendations tied to measurable NOI impact

  • Improved transparency for ownership, lenders, and stakeholders

MX3’s Distressed Asset Review brings discipline, clarity, and momentum to challenged assets, helping owners move from uncertainty to control, and from stabilization to renewed value creation.

Retail-Specific Revenue Optimization

MX3’s Retail-Specific Revenue Optimization service is designed to ensure owners capture all revenue they are contractually entitled to while protecting long-term asset performance. Retail leases often contain complex percentage rent provisions, reporting requirements, and audit rights that, if not actively enforced, can result in meaningful revenue leakage. MX3 brings discipline, transparency, and enforcement to these revenue streams.

We begin with a detailed review of lease provisions governing percentage rent, gross sales definitions, exclusions, reporting frequency, and audit rights. Using tenant sales data, point-of-sale reporting, and historical reconciliations, we validate reported sales against lease requirements to identify underreported revenue, misapplied exclusions, and calculation errors that directly impact rent collections.

Beyond recovery, MX3 focuses on strengthening ongoing compliance. We evaluate tenant reporting practices, documentation standards, and timing to ensure future sales submissions are accurate, complete, and defensible. Where discrepancies are identified, we support enforcement efforts through clear documentation and data-backed findings, minimizing friction while maximizing recoveries.

Our approach integrates seamlessly with asset management workflows, providing owners and operators with improved visibility into tenant performance, revenue integrity, and lease compliance across individual assets or entire retail portfolios.

What We Evaluate:

  • Percentage rent clauses and sales definitions

  • Tenant gross sales reporting and exclusions

  • Historical percentage rent calculations and payments

  • Reporting frequency, documentation, and compliance gaps

  • Audit rights, notice requirements, and recovery opportunities

What This Delivers:

  • Recovery of underreported percentage rent

  • Improved accuracy and consistency in tenant sales reporting

  • Reduced revenue leakage and stronger lease enforcement

  • Enhanced transparency into tenant performance

  • Sustainable revenue integrity beyond the initial review