A privately-owned real estate management company with three large commercial complexes and approximately 60 tenants was in financial disarray following the departure of their CFO. Rent rolls were severely out of date, 60% of accounts receivable were overdue with no finance charges being issued, and CAMs were drastically under-budgeted, creating massive year-end reconciliations for tenants.
Quarterly financials were consistently late to both ownership and the bank, missing critical deadlines and preventing informed capital allocation decisions. The internal team lacked the bandwidth to address the mounting problems, and without intervention, the situation would only deteriorate further. Enhance stepped in with no prior real estate accounting experience but a commitment to learn and deliver. Within 90 days, Enhance reduced close time by two weeks, submitted on-time financials, updated CAM budgets, and reduced overdue AR by 30%. Over two years, Enhance increased EBITDA from $1.8 million to $2.3 million, reduced overdue AR to just 2%, and increased average quarterly distributions by nearly $50,000. This enabled ownership to confidently sell two properties and redeploy capital into higher-ROI ventures.
Enhance prioritized immediate stabilization of accounts receivable and cash collections before building out strategic financial infrastructure.
Key actions included:
We had more confidence that financials wereright, that the tenants were being billed what they were supposed to be, theday-to-day seems calmer knowing that things were getting fixed.
- Leadership Team
The engagement delivered dramatic improvements in financial operations and cash flow. EBITDA increased from $1.8 million to $2.3 million over two years, while average quarterly distributions rose by nearly $50,000. The reduction in overdue AR from 60% to just 2% created predictable cash flow that made the entire financial cycle significantly easier to manage.
The transformation enabled ownership to make confident capital allocation decisions. With clean, timely financials and improved cash visibility, ownership successfully sold two properties and redeployed capital into other real estate projects with higher ROI potential. The remaining properties now operate with happier tenants who no longer face massive CAM reconciliation surprises, faster decision-making cycles, and ownership confidence in the accuracy of their financials.
The turning point came when Enhance delivered both financials and distribution calculations within two weeks of quarter close—compared to over a month previously. This compressed feedback loop between back-office, property management, and ownership made the subsequent sale process for two properties significantly cleaner and smoother.