Condominium Developments
250-Unit Midrise Condominium Development
Situation: In order to maximize recovery from this failed construction loan, we become the developer of this project, which was 85% complete when we took the assignment.Strategy: First, we obtained title which we did through a combination of foreclosure litigation and settlement. Thereafter we undertook a completion of construction and a disposition of the individual condominium units. The disposition required a modification of the offering plan and extensive negotiations with the condominium board. We developed an exit strategy which included a combination of retail unit sales and a series of public auctions. In addition to hiring an auction and marketing firm, we structured an end-loan package to facilitate sales.
Resolution: This was a two and a half year project. In a market with limited capital and economic alternatives, the assumption of development responsibilities was the best course of action to maximize recovery.
27-Story 223-Unit Luxury Condominiums
Situation: This assignment involved an approximately 70% complete building and a bankrupt developer.
Strategy: Once again, we stepped into the shoes of the developer and completed and sold the project. We developed an exit strategy which included a combination of retail unit sales and a series of public auctions. In addition to hiring an auction and marketing firm, we structured an end-loan package to facilitate sales.
Resolution: This was a two and a half year project. Due to a lack of buyers of distressed loans and sources of equity to recapitalize the deal, completion and sale of the property was the best course of action to maximize recovery.
Thirteen-Story 80-Unit Condominiums
Situation: This resolution involved a defaulted construction loan. The developer had completed and sold a majority of the project, but left many undesirable units unsold.
Strategy: After extensive litigation including bankruptcy filings of four related partnerships, we arranged a bulk sale of the residential units to a Japanese hotel operator. In addition, we provided an end loan to facilitate the sale of the commercial space to a financially stable minority partner.
Resolution: The bulk sale of the residential units to a hotel operator resulted in a much greater return of loan proceeds than would have otherwise been possible.