Understanding the local market: Rancho Ellen Apartments
Managing uncertainty: Palm Springs Mile Shopping Center
The challenge: Understand the bank’s investment in a multifamily property in a new demographic than the bank was accustomed to, at a time when the investment was drawing increased attention.
The solution: Curme spent considerable time in the area and among the resident population, working to understand the local demographics to ensure the investment was sound.
Special Servicing: 24 Kmart loans
Manage a $66 million loan at a time of intense regulator scrutiny about large real estate holdings among the nation’s financial institutions.
Through extensive and methodical attention to detail of the loan guarantor's financial position, enough credible information was obtained to satisfy the regulators not to downgrade the credit rating.
Show Me the Money: The EpiCentre
Bidding blind to acquire special servicing rights of a pool of 24 loans secured by shuttered Kmart stores located nationwide. The underlying land was owned by two investor groups of remainder-men interests. Loan documentation was lacking on the loans, which involved leases rejected by Kmart in its 2002 bankruptcy.
Understand the scan loan documentation, the inherent liabilities, and state title recovery laws to formulate foreclosure sale action plans.
Headline: Show Me the Money: The EpiCentre
Watch Curme explain the story behind the EpiCentre.
The challenge: The primary challenge at EpiCentre was emotional: parties to the transaction were mad, mad as heck. Through our acquisition and injection of capital we were able to gain the confidence of the warring parties, which then enabled dialogue, which in turn enabled general consensus for appropriate resolutions. Consensus was germane, primarily because our end goal was to sell a stabilized asset with improved cash flow. Stabilization is not sustainable in a contentious environment.
The solution: Gain title of both the EpiCentre and air rights to the failed condominium originally planned. With EpiCentre under control of one ownership, we worked through existing problems and moved quickly to tie up loose ends and work toward sale ready. In 2012, the EpiCentre played a central role in Charlotte’s hosting of the Democratic National Convention, garnering favorable reviews in national media. Ultimately we sold the project at a 3x multiple of 4Q10 acquisition costs.