San Carlos Condominiums: Protecting Our Client’s Interest in a Crunch
Objective
Objective
To evaluate the financial and legal risks associated with funding and remarketing an investment in a tight time frame.
Situation
Canyon Capital Realty Advisors was interested in acquiring and remarketing a bank of units that were substantially completed but not selling in this 17-story, 144-unit residential building. The company had attracted a potential buyer but needed property development and construction management expertise to uncover any potential financial or legal risks before making the acquisition. They also needed reliable due diligence to be completed in less than 30 days.
PMA's Contribution
PMA’s team dove into the project with established systems for organizing and managing a thorough due diligence process. In less than one week, PMA professionals had assembled and reviewed the critical background information and were conducting interviews on-site with design, development and builder representatives. Through candid dialogue and open communications, we created a collaborative relationship with the prospective buyer’s representative, enabling the team to divide and conquer due diligence efforts and further reducing the time required to complete the project. The PMA team reviewed and evaluated all financial and legal obligations while the buyer’s representative conducted the physical property assessment. We then created a shared contractor’s punch list.
Results
PMA’s due diligence uncovered a number of undocumented property issues and proved that the investment had a higher open-ended financial obligation that was needed. With PMA’s established processes and collaborative approach, due diligence on the project was completed in 15 days, the seller took action to reduce identified risks and our client closed a successful deal.
Read project details on San Carlos Condominiums