In first quarter 2009, we were introduced to the River Run Apartments in Spartanburg, S.C. Consisting of 10 buildings, the property was left unfinished and exposed to the elements because the construction lender stopped funding (the guarantor filed for bankruptcy protection). Mold proliferated. The appliances were stolen. The construction lender was under pressure to sell its growing portfolios of defaulted loans, and we were in a position to act quickly on a bid, which we won.
We were ready to work onsite on day 1 because we'd spent $50,000 in due diligence in advance of closing and had assembled a team that was ready to go. The units were completed nine months after we started. Spectrum Properties was the leasing agent and the property leased up at a very satisfactory rate. By second quarter 2010, the nation’s apartment boom was underway and we sold the property to New York-based investors who paid a competitive price. In and out in 18 months.