Asset Repositioning and Advisory Services
- Special counsel to trustee/bondholders of tax-exempt bonds on 17 properties in AZ, FL, OK, and TX
- Total of 4,750 units with a total outstanding debt of over $200 million
Recap was engaged as financial advisor by counsel on behalf of bondholders owning tax-exempt bonds on a distressed, 17-property multifamily portfolio. The financial structure of the portfolio is complex, including five different ownership entities, three tranches of bonds, and interest rate swap obligations. Because the portfolio faced significant management, operational, physical, and capital problems, Recap first conducted individual site assessments, then created and implemented action plans for each property.
Based on the operational reviews, Recap recommended that the bondholders hold and stabilize the portfolio to maximize disposition value. As part of the stabilization effort, a new property management company was identified and installed, a plan to bring all accounts payable to current status was developed, and a comprehensive capital improvement plan was implemented. The properties are now stabilizing under new management and all relevant metrics are trending upward. As the properties continue to improve, opportunities to realize value through sale will be periodically reevaluated.