“This workout included 26 different owners, litigation involving more than 15 separate defendants, a bankruptcy, an extensive remediation of the property, and a rollup from the tenant-in-common structure to an LLC,” said Phil Jemmett, CEO of Breakwater.
Austin, TX (PRWEB) June 03, 2013
Today, Breakwater Equity Partners, a real estate restructuring consultancy and investment group, announced that the 26 tenant-in-common owners of Met Center 10 have completed a nearly three year effort to restructure the property. According to court documents, Met Center 10, a 345,000 square-foot building in Austin, TX, was the subject of extensive litigation and bankruptcy. Ultimately, the owners collected $10.9MM in litigation proceeds, received a loan extension of almost five years, and repaired significant construction defects. (case no. D-1-GN-08-002104 in the District Court of Travis County, Texas, 261st Judicial District (the “Met10 Lawsuit”).
“This was a complicated and exhausting process,” said Sam Brenner, Chairman of the Steering Committee for the Met Center 10 investors. “We could not have done this without the help of Breakwater and the unity of our investor group. At several points we thought that the property was lost, but we trusted the professional advice of Breakwater and they came through for us.”
“This workout included 26 different owners, litigation involving more than 15 separate defendants, a bankruptcy, an extensive remediation of the property, and a rollup from the tenant-in-common structure to an LLC,” said Phil Jemmett, CEO of Breakwater. “This is probably the most convoluted tenant-in-common restructuring ever completed. We appreciate the confidence and support of our investors throughout this difficult process.”
“Most of our investors are senior citizens and cannot afford to lose their money,” said Jack La Flesch, one of the owners. “We knew that the lender wouldn’t give up easily, but we were committed to saving our investment, so we hired Breakwater to restructure the property and pursue the wrongdoers. We expect to resume distributions in the very near future and recover our entire investment. This outcome has exceeded our expectations.”
About Breakwater Equity Partners
Breakwater Equity Partners is a San Diego, CA 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 asset situations. Breakwater’s professional team combines legal, financial, economic, banking, and real estate expertise to devise customized strategies for each unique case regardless of market (gateways to tertiary), asset class (single and multi-family, office, flex, multi tenant land, time shares, development, power centers) or loan type (portfolio or CMBS). Please visit our website at http://www.breakwaterequity.com to review case studies on representative deals. Breakwater Equity Partners, please call 858-490-3630 or visit http://www.breakwaterequity.com.