Strategy: The purchase price of the loan was significantly below the outstanding loan balance and foreclosure proceedings were already underway. Unfortunately, the borrower filed bankruptcy and it took six months to foreclose which was an event contemplated in the underwriting. Outperform the market with a new investment basis, stable ownership structure and a promotional and active marketing program.
Development: Implemented a refurbishment of the property which included a new paint scheme, parking lot improvements and some landscape improvements.
Result: In progress