Forty One Corp. (special assets of a national bank’s owned-real estate portfolio) had foreclosed on development land surrounding a public golf course near Zionsville, Indiana. The 159-acre site was zoned for residential, but otherwise unimproved. The site overlooked a manicured public golf course and had been valued for purposes of the original loan as if ready for immediate single-family residential development. The lender was unwilling to provide financing to any buyer. Less than two months after listing the property for a price discounted from its re-appraised value, the owner informed RESOURCE Commercial Senior Vice President Ross Reller that the price could be further reduced if the buyer would pay cash and close within 60 days or less.
“Ross maintained an aggressive and wide-reaching campaign to identify individuals and corporations that might be in a position to recognize the value of the property.”
- , SVP, Golf Club of Indiana
Ross immediately recontacted all parties who had previously expressed interest and conveyed the owner’s urgency and the opportunity it created. Traditional home building companies and lot developers indicated they were both unable and unwilling to acquire the property on an all-cash, quick-close basis. Ross maintained an aggressive and wide reaching campaign to identify individuals and corporations who might be in a position to recognize the value of the property. Many of these prospects had no knowledge of the property prior to Ross’ initial contact, less than 60 days preceding the date needed to close. To assist prospective buyers in quickly evaluating the opportunity, Ross compiled all public information pertaining to the property and obtained additional relevant materials from the owner. Based upon Ross’ knowledge of and participation in many of the land deals in the trade area, he was able to present key factual data that enabled prospects to quickly understand the offering and its merits.
Ross worked quickly to secure two all-cash offers that could close within the prescribed 60 day time frame. The seller’s legal team and Ross rapidly selected one of these parties, a prominent national developer of retirement communities. Ross coordinated with the buyer’s legal and finance teams, obtaining their internal approvals sufficient to complete the transaction within the tight time frames necessary to close at the agreed price. Closing occurred less than 45 days after Ross’ initial contact with the successful buyer, Baptist Homes of Indiana, Inc.
Note: We have several professionals with substantial client transactional experience prior to joining RESOURCE Commercial, which is included above.