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JFK BUILDING
Philadelphia, PA
Mezzanine Investor
SITUATION:
This vintage 1940’s, 750,000 sq. ft., former tank armory located in the Center City area of Philadelphia was a joint venture condo redevelopment between a Stamford-based mezzanine fund and a local sponsor. The mezzanine lender was in dispute with its sponsor over execution shortcomings including development delays and missing the market. They lacked confidence in the sponsor’s ability to execute an apartment redevelopment.
THE PLAN:
Take over property activities, negotiate third-party claims and market and sell the building.
RESULTS:
RDS has negotiated over $500,000 of accounts payable and liens at 50% of par and is litigating
$1 million in other claims. RDS targeted the right local buyer and has negotiated a purchase and sale agreement for more than its original 2005 acquisition price. Closing took place in Q4 2009.
