SAN DIEGO (July 12, 2012) – Representing a $1.6 billion real estate investment portfolio, William J. Hoffman – the chief executive officer of San Diego-based Trigild Inc. – has been appointed liquidating trustee over the bankruptcy of Secured California Investments, Inc. (SCI) and SCI Real Estate Investments, LLC, two related Los Angeles-based companies that acquired multifamily and commercial properties throughout the country via a complex tenants-in-common (TIC) investment structure.
Hoffman was appointed chief restructuring officer of the SCI entities by the U.S. Bankruptcy Court for the Central District of California in October 2011 and subsequently, restructured management and secured exit financing as part of the plan for liquidation. In turn, he was appointed liquidating trustee by Judge Peter H. Carroll, U.S. Bankruptcy Court, Central District of California, Los Angeles Division, and will now seek to maximize recovery and liquidation of various equity interests, deferred fees, notes receivable and other assets on behalf of creditors.
According to Hoffman, the SCI entities acquired and syndicated more than 60 multifamily, office, student housing and retail properties – primarily in California, Texas, Florida, Georgia, Arizona and New Mexico – via TICs, which allow capital gains to be deferred by investors. In this type of property ownership, a fractional interest is owned by two or more parties – yet following the real estate slump, the value of some TICs decreased significantly. “Both SCI entities made large sums of money through acquisitions of premiere real estate assets and related acquisition fees – which were partially deferred – and when the economy stalled, were unable to pay their creditors,” explained Hoffman. “Our goal as liquidators is to efficiently maximize recovery.”
The entities filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Central District of California in February of 2011. At their peak, the SCI entities syndicated interests in approximately 150 properties valued at over $2 billion. Through fractional tenant-in-common co-ownership facilitated through 1031 exchanges by individual investors, SCI entities facilitated larger, high-quality commercial property investments to individual real estate buyers nationwide.
Specific responsibilities initially performed by Trigild included evaluating the business and its financial/operational situation, assisting the companies’ financial management, researching ownership structure and transactions, insuring compliance with administrative reporting and creating a five-year operating budget for the estate.
According to Hoffman, Trigild was selected for the work due to its extensive experience in an array of business sectors on a nationwide basis – in liquidations, real estate management and operating businesses.
Headquartered in San Diego with regional offices throughout the country, Trigild has more than 35 years of commercial real estate and operating business expertise, with a focus on managing and maximizing value for assets in an array of industries, including hospitality, multifamily, office, industrial, retail, petroleum properties and more. The company also provides receivership and bankruptcy services and has successfully handled over 600 court appointments. For further information, visit www.trigild.com.