Underperforming Real Estate
Brier Creek
Brier Creek South is a 130,000 square foot Class A office building being transitioned into an institutionally managed multi-tenant building. This property is located in the highly desirable Brier Creek Corporate Center, in the RTP/Glenwood submarket in Raleigh, North Carolina. Closing was completed in November 2019.
Peachtree North
The portfolio was comprised of five multi-story office buildings – four in Peachtree Corners and one in Johns Creek. For nearly two years, the seller had been in and out of contract with buyers who simply couldn’t perform. We acquired the property for $37,500,000 in August of 2014 with a real estate operator located in Atlanta, GA. We invested more than $1 million in renovations and improvements, including the addition of a state-of-the-art conference center. The renovations have already allowed us to increase rent for more than 50,000 square feet of space. The buildings were underperforming in the market place and have been transformed into a sought-after office location.
Lake Side
Lakeside at Spalding Triangle is an office park comprised of four buildings containing 258,547 square feet of high-tech suburban office space in the rapidly growing city of Peachtree Corners, GA. The property was acquired for $23,800,000 in March of 2014 with a real estate operator located in Atlanta, GA. At that time it was 82% percent leased to four tenants. Our hands on approach to lease negotiations and our willingness to be flexible and creative in developing space solutions for tenant companies has helped increase the occupancy rates. By October 2015 the buildings were 94 percent leased.
Non-performing Loans
Bank of America Office Building
The project experienced cost overruns during the boom in the real estate market and the parking deck was never completed. The parking ratio at the building was making it difficult to lease up the vacant space. The combined unpaid balance of the non-performing loans was approximately $8,250,000. The loans had been originated and were being serviced by a National financial institution. We were able to move quickly with our capital on hand and meet the deadline imposed by the financial institution. We restructured the debt with the borrowers allowing them to expand the parking deck and quickly sell the building, pay off our debt and put some money in their pocket.
Hampstead Med-Pro
We worked with the borrower to help with a loan that was higher than the value of the building. Their loan was in default with a National financial institution and they were at risk of losing the building and being forced to pay the deficiency. The following is from the managing member of the borrower. “Kevin came through for my group when the chips were down. We had a loan maturity during the Great Recession. He devised a plan and carried it out to gain control of the note and refinance it. This protected our assets and avoided personal recourse on the note.” Jim Walesa, Hampstead Med Pro, LLC
Coldwell Banker Office building
The following is from a tenant in a building where we restructured the non-performing loan. “Kevin was VERY helpful to me in negotiations with our 26,000 sq. ft. office building. Not only did he do an outstanding job on my behalf, but he was very timely and once he started the process, he did a fantastic job of keeping me informed all along the way. In my nearly 26 years in the real estate business, I have been fortunate to work with many professionals, however he is truly the BEST representative I have worked with and would highly recommend him.” Tim Milam, President, Coldwell Banker Sea Coast Advantage, Wilmington NC