A cash strapped California-based borrower abandoned management of $500 million worth of real estate, leaving the lender in a precarious situation in which collateral value was spiraling downward. A large special servicer engaged Trigild to stabilize the 6,000-unit portfolio.
|Submarket||AZ, CA, CO, FL|
|Product||13 apartment complexes|
|Client||Midland Loan Services|
|Strategy||Stabilize abandoned assets|
|Lien Reduction||$1.4m, equal to 80%|
|Occupancy Increase over 1 year||66%-92% or 26% increase|
|Net Increase in Leases||747|
|Turnover Ratio||50% turnover is less than half of market average|
Business Plan Summary
The client had an immediate need in regards to these properties, as property level management had abruptly stopped. Additionally, long term asset management needed to be a priority — to preserve the portfolio’s value in case of liquidation. When Trigild was appointed receiver, our focus was to meet the immediate needs of current residents and employees — while also thinking strategically about how the positioning and location of these assets could be used to attain maximum value.
Trigild faced a number of legal, operational, personnel, resident and media challenges following its appointment as receiver. Within hours of receiving court approval, Trigild was on site at several locations, assuming fiduciary responsibility, working with vendors to achieve immediate resolution of the most pressing issues and interfacing with residents to minimize concerns. After stabilizing the assets, Trigild began a liquidation processes that followed a precedent-setting court decision in Arizona regarding sale through receivership.