Breakwater Announces Dividend Distributions for Investors

Share Article

Embassy Plaza owners resume distributions after three year hiatus.

Today, Breakwater Equity Partners, a commercial loan modification firm, announced the resumption of dividend distributions to the owners of Embassy Plaza. The 22 tenant-in-common (TIC) investors had not received dividend distributions since the fall of 2009. Embassy Plaza is a three-story, multi-tenant office building located in Omaha, Nebraska. Distributions have resumed following the completion of a debt restructuring spearheaded by Breakwater.

The 22 mom-and-pop owners purchased the 131,000 square-foot property in 2007 for $17 million and expected to receive steady dividends to supplement their retirement. The investment was sold to the TICs as a secure source of retirement income. Unfortunately the property value decreased, dividends were suspended, and the building was threatened with foreclosure. The investors hired two different law firms and a mortgage broker to save the property from foreclosure, to no avail. The owners then hired Breakwater.

Breakwater delayed the foreclosure, invested new capital into the property, obtained a discounted payoff from the lender, brought in new financing, and signed the loan guarantees. This process was completed in 102 days. “These distributions are very important to the investors,” said Robert Bartley, a steering committee member. “Most of our investors are retired and count on their TIC investments to supplement their social security payments. A foreclosure would have been devastating for all of us. Thanks to Breakwater we were able to save our investment.”

“When investors get into trouble it is very difficult to know who to trust,” said Phil Jemmett, Breakwater CEO. “Fortunately, the Embassy Plaza investors had a strong steering committee to rally around. Without a united front and the right strategy, investors are at a huge disadvantage when battling lenders. We were to level the playing field and achieve a favorable outcome for a vulnerable group of investors.”

About Breakwater Equity Partners

Breakwater Equity Partners is a San Diego-based commercial real estate workout consultancy and investment firm. Through Breakwater’s extensive experience on over 200 engagements with loan values in excess of a $2.5B, the firm has devised a unique, multidisciplinary approach to uncovering and resolving distressed assets. Breakwater’s professional team combines legal, financial, economic, banking, tax, and regulatory expertise to devise customized strategies for each property regardless of market (primary to tertiary), asset class (office, retail, multi-family, industrial, flex, land) or loan type (portfolio or CMBS). For more information on Breakwater Equity Partners, please call 858-490-3630 or visit http://www.breakwaterequity.com.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Danielle Gano
Elle Communications
858.208.9227
Email >