Distressed Debt Portfolio AcquisitionMid-Atlantic and Southeast

The Challenge:

  • 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.

The Result:

  • 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.

At A Glance

> $200 million

investment (debt +equity)

3x

multiple on equity invested

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