A year ago we were facing default and worried that our property would be lost to foreclosure, bu now we have a performing asset that is producing strong cash flow.
Tulsa, OK (PRWEB) December 20, 2013
Breakwater Equity Partners, a commercial real estate investment and advisory firm, announced that the tenant-in-common owners of Union Pines will be receiving increased dividends from the Tulsa, OK property. The recently restructured asset is producing more than four and a half times the previous monthly dividend.
The property has improved its cash flow due to a five year lease extension with the primary tenant, U.S. Cellular, coupled with a new lower cost loan from the Bank of Oklahoma. Breakwater negotiated the lease extension, secured the new loan, and signed the loan guarantees on behalf of the tenant-in-common owners.
“This was not an easy process but we are pleased that our hard work has paid off,” said Don Burns, one of the owners. “A year ago we were facing default and worried that our property would be lost to foreclosure, but now we have a performing asset that is producing strong cash flow.”
The twenty-two tenant-in-common owners hired Breakwater Equity Partners to restructure their property and oversee tenant lease negotiations. US Cellular’s lease expiration and the loan maturity fell within a month of each other. New lenders will not finance commercial properties without a reliable revenue stream, so Breakwater negotiated a five year lease extension with US Cellular and a new loan with the Bank of Oklahoma.
The owners also hired Breakwater to replace the asset manager and streamline the cumbersome tenant-in-common ownership structure. The previous asset managers refused to leave, even after the investors unanimously fired them, so it became necessary to file litigation (Superior Court of California, County of Orange, Case No. 30-2013-00639389). After successfully terminating that asset manager, the investors hired Fameco Real Estate as the new asset manager. Breakwater then rolled up the ownership structure through a 721 tax deferred exchange and secured a new seven-year loan at a fixed interest rate of 5.08 percent.
“When the owners of Union Pines reached out to us, they were very concerned about the performance of their management, the stability of their asset, and their level of dividends,” said Jack Rose, Chief Strategist at Breakwater Equity Partners. “Fortunately, we had a united group of owners who were committed to saving their property. It wasn’t an easy process, but we held together and are now reaping the benefit of our efforts.”
About Breakwater Equity Partners
Breakwater Equity Partners is a San Diego-based commercial real estate advisory, restructuring, and investment firm. Through our extensive experience on over 300 engagements with loan values in excess of $4B, the firm has devised a unique, multidisciplinary approach to analyzing and optimizing distressed assets. Breakwater’s professional team combines legal, financial, economic, lender, 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), loan type (portfolio or CMBS), or circumstance (performing or non-performing).