Overview

KRG helped Fifth Third Bank dispose of a partially developed land portfolio that was underperforming. KRG provided the Bank with expert opinions and implemented an agreed upon strategy of disposition overachieving Fifth Third’s expectations.

Who is Fifth Third Bank?

Fifth Third Bancorp, established in 1858, is a diversified financial services company headquartered in Cincinnati, Ohio. Fifth Third is among the largest money managers in the Midwest and, as of March 31, 2016, had $303 billion in assets under care, of which it managed $26 billion for individuals, corporations and not-for-profit organizations.

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has $144 billion in assets and operates 1,191 full-service Banking Centers, including 94 Bank Mart® locations, most open seven days a week, inside select grocery stores and 2,541 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth and Asset Management. Fifth Third also has an 18.3% interest in Vantiv Holding, LLC. Fifth Third is among the largest money managers in the Midwest and, as of June 30, 2016, had $305 billion in assets under care, of which it managed $26 billion for individuals, corporations and not-for-profit organizations.

The Challenge

With a partially developed land project, Fifth Third looked to KRG to assist in the completion of the project.  The particular real estate submarket had many adverse factors including the national economy.  KRG’s philosophy of researching all applicable conditions and issues with regards to the assets and then developing a strategy proved pivotal in the success of the assignment.  With KRG’s thorough market and development knowledge coupled with their experience, the strategy was implemented. KRG repositioned the assets, implemented their strategy and market plan, worked with the local municipality to position the assets correctly in the local real estate market.

The Results

Through thoughtful management of the process KRG was able to initially stabilize the asset and then dispose of it over a period of time allowing for a better outcome for the bank than originally believed possible. KRG accomplished this by diligently implementing the predefined strategy along with adapting to changing market conditions.