big city

Ponzi Scheme Portfolio Takeover

0
/
0
Homepage
/
about us
/
Case Studies
/
Ponzi Scheme Portfolio Takeover

Project Overview

33’s primary goal on this project was to preserve value for the investors that were defrauded in this Ponzi scheme and demonstrate to the SEC that the properties were a viable going concern. In order to do so, we brought marketing efforts online and recalibrated pricing to boost rent. We also implemented a web-based property management software to control collections, executed headcount reductions, centralized reporting to 33’s corporate finance and accounting teams and addressed the critical deferred maintenance and existing property violations.

33 parallax logo
our process

Project Outcome

Over the course of 15 months, and through the heart of the pandemic, we maintained occupancy levels within 2% of pre-pandemic levels, increased average rents by 4% to $1,175 per unit, held collections consistent with pre-pandemic levels and realized a 16.5% reduction in operating expenses. The portfolio was orderly liquidated resulting in near 100% return of principal to all investors that were victims of the scheme.

before
after
beforeafter
$9.5M
Annual Gross Income
89%
Occupancy
15 Months
Case Duration
city on gray

Want your property to be successful too?

Get in touch to talk about the many ways our investment brokerage team can create extraordinary experiences for you and your residents.
contact us