Sold for $15.7 Million
$5.2 Million Above the Appraised Value at Foreclosure.
Scope of Work
Following the foreclosure, the property appraised for $10.5 million in December of 2017, with a contemporary loss projection of $4.5 million. Market feedback was that the bank was looking to vacate the property and re-locate to another market due to a lack of effort by the prior owner to engage in renewal discussions or fund TI/LC costs. Additionally, local brokers had reported that they had expected this outcome for an extended period of time, such that the property suffered from a negative perception within its market.
CWCAM recognized the need to make aggressive efforts to repair the building’s perception within the market and make clear to the bank that the Trust was able and willing to execute a market rate renewal, including the associated TI/LC costs. Renewal negotiations commenced as soon as title was taken and took approximately 12 months from foreclosure, which resulted in the bank executing a 12 year 7 month renewal at a market rental rate, preserving $2 million of EGI at the property.
CWCAM worked closely with the Trust’s Master Servicer to ensure that funds to advance for leasing commissions would be available despite the declining loan base of the 11 year-old pool. Following the execution of the lease, CWCAM rapidly brought the asset to market for sale in order to pass the tenant improvement obligation on to a buyer, preventing further advancing.