- HOME
- EXECUTIVE PROFILE
- OUR PROPERTIES
- NON PERFORMING NOTES
- ADVISORY BOARD
- CONTACT US
- Joint Venture
Property Description:REO property acquired for $5.00 million, which represented an 8.8 percent capitalization rate based on in-place income. Original loan amount was $21.50 million. Property replacement cost is $27.00 million. The property was completed in 2007. Upon acquisition, property was 42 percent occupied. Four new leases have been signed. The property is currently being aggressively marketed for lease to other prospective tenants.
The current market value of the property is believed to be approximately $9.10 million.
Location: Henderson, Nevada
Property Type: Retail
Acquisition Date: November 2010
Size: 91,100 square feet
Property Description:Note with unpaid principal balance of approximately $4.40 million acquired March 2010 for $1.05 million. This represented a capitalization rate of approximately 18 percent based on year one income. Upon Note acquisition, property was 52 percent occupied and in need of some renovation. A receiver was put in place and foreclosure was completed December 2010. The property was refinanced in May 2011 for the acquisition cost of $1.05 million. Expiring leases for three tenants have been renewed. Three new leases have been signed. The current market value of the center is believed to be approximately $3.50 million.
Location: Starke, Florida
Property Type: Retail
Acquisition Date: December 2010
Size: 106,700 square feet
Property Description:Note with unpaid principal balance of approximately $3.49 million was acquired July 2011 for approximately $2.05 million. The Note was in default due to its maturity date. Acquisition price represented a 9.5 percent capitalization rate based on in place income of the underlying property. At the time of the Note acquisition, the property was approximately 80 percent occupied. Foreclosure was completed by August 2011. Excess funds collected from the borrower more than offset the additional costs associated with taking control of the property. Management is nearly finished with renovations for units that were vacant upon acquisition of the property, and has begun focusing on lease-up for the remaining vacancies. In the first month of property ownership, occupancy has been increased to 84 percent.
The property was refinanced within the first 90 days after note acquisition with a loan of $2.236 million. The refinancing returned all of the initial capital investment as well as approximately $150,000 of profit. The current market value of the property is believed to be approximately $3.90 million.
Location: Mesa, Arizona
Property Type: Multi-family
Acquisition Date: August 2011
Size: 118 units
Property Description:Note with unpaid principal balance of approximately $1.19 million was acquired September 2010 for $803,000. Acquisition price represented a 14.3 percent capitalization rate based on in place income of the underlying stabilized property. Property was under control in October 2010 with minimal additional costs. Management is currently focused on minor renovations to the property and increasing rents which are below market rate.
In April 2011 the property was refinanced. The acquisition loan was paid off, the initial capital was returned, and a profit of approximately $100,000 was realized. The property is currently under contract for sale at $1,575,000. Upon completion of the transaction, the Annualized Return for the investment will be approximately 143 percent.
Location: Fresno, California
Property Type: Multi-family
Acquisition Date: October 2010
Size: 34 units
Property Description:Note with unpaid principal balance of approximately $3.57 million was acquired October 2011 for approximately $1.73. Acquisition price represented a 13.11 percent capitalization rate based on in-place income of the underlying property. Management took ownership of property in October 2011. The current market value of the property is believed to be $3.10 million.
Location: Yulee, Florida
Property Type: Retail
Acquisition Date: October 2011
Size: 28,760 square feet