|
|
|
|
|
|
THE MARK
San Diego, CA
Mezzanine investor
SITUATION:
The Mark is a 32-story, 244-unit condominium building located directly north of San Diego Padres’ Petco Field that was completed in 2007. RADCO was engaged to renegotiate the senior loan and to take over full development responsibilities from the original sponsor. No units had been sold for almost two years prior to RDS’s involvement.
THE PLAN:
Aggressive re-launch of marketing including advertising, television, signage, magazines, and a major broker/buyer event; renegotiate outstanding payables; re-establish positive relationship with the HOA.
RDS has settled outstanding payables for an average of 40% of par and assuaged an angry homeowners association. RDS has sold approximately twice the number of units that had been projected in the business plan as a result of our efforts. RDS has sold 91 units since April 2009. Paid off the first mortgage within 11 months and pro-forma a complete return of the mezzanine investment.
