Distressed Debt Portfolio AcquisitionMid-Atlantic and Southeast
- A large Southeastern bank needed to get a multi-hundred-million non-performing loan off its books in less than 90 days – too short a time to market the portfolio or go through a protracted foreclosure process.
- The bank approached Vincent Costantini, then the Chief Investment Officer of a billion-dollar family office.
- The property was 85% occupied and had been involved in a complex workout with the original borrower.
- The prior owner was in severe distress and had run out of cash; real estate taxes were unpaid and maintenance deferred.
- The portfolio had a complicated tax-exempt financing structure that was going to require multiple approvals to transfer.
- Negotiated a complex tri-party settlement to acquire the properties and restructure the debt into a new performing loan, completing the required underwriting and due-diligence in less than 90 days.
- The portfolio was ultimately re-sold within six years, earning a return of three times the equity capital invested.