A privately-owned real estate management company with three large commercial complexes and approximately 60 tenants was facing a complicated financial position. Amid staff restructuring, rent rolls were out of date, 60% of accounts receivable were overdue with no finance charges being issued, and CAMs were under-budgeted, creating large year-end reconciliations for tenants.
Quarterly financials were consistently late to both ownership and the bank, missing deadlines and preventing informed capital allocation decisions. The internal team was not able to address the mounting problems, and without intervention, the situation would continue to decline. Within 90 days of the engagament, 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 redeploy capital into higher-ROI commercial properties across their operating region.
Enhance prioritized immediate stabilization of accounts receivable and cash collections before building out strategic financial infrastructure.
Key deliverables included:
We had more confidence that financials were right, that the tenants were being billed what they were supposed to be. The day-to-day seems smoother knowing that things are 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 CAM reconciliation surprises. The changes that Enhance implemented alsp created 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.