Suburban Multifamily Bankruptcy
33 spent many months working with counsel and trustee for the estate to forecast rent and occupancy levels, quantify deferred capex, create a plan to right size operating expenses and ultimately determine value for the properties individually and as a portfolio sale. Given our wealth of operational experience, we were able to conduct an expeditious diligence process thereby allowing the court to move swiftly to a 363 (bankruptcy) sale.
The auction was held in the midst of the pandemic with multiple qualified bidders attending the virtual auction. The winning bid came in over $3M higher than our stalking horse bid and the buyer was forced to close with no financing contingencies. The Windy City portfolio was part of a broader alleged fraud scheme involving a number of properties acquired by a not-for-profit shell entity called the Better Housing Foundation. The return on the sale of the Windy City assets was significantly higher than all other assets owned by BHF.