When the owner of this independent living community passed away, his estate hired a chief restructuring officer (CRO) to assist it in managing a pre-bankruptcy situation.
25900 Euclid Avenue
Privately Owned Real Estate Euclid, OH
Sale Price: $5,250,000
The sale of this property was particularly challenging due to its location in an economically challenged area just outside of downtown Cleveland. Specifically, the primary market area was lower income and could not support the higher rents that could be achieved in other suburbs of Cleveland. Additionally, some anticipated regulatory changes relating to fire suppression requirements threatened to add substantial cost for any new owner.
Ultimately, the best buyer for this asset was one that owned a similar facility nearby. Despite the regulatory changes that threatened to squash the sale to this buyer in the eleventh hour, the AW team worked diligently to keep the transaction on track. The AW team successfully negotiated a sale price that was more than sufficient for the estate to satisfy its creditors and the transaction closed in time for the estate to avoid filing for bankruptcy.
- CLIENT TESTIMONIAL
Diana Peterson was my representative on a very difficult sale of a retirement property I was selling. I am CRO of a company that had this property in its portfolio, and I was selling it to pay back investors in the company. The property was over 40 years old and was in significant need of cap ex and general upkeep.
Additionally, the property was in a blue collar community that was in significant decline due to the loss of manufacturing jobs in and around the community. As a result, the value of the property was in a free fall.
Ms. Peterson developed excellent marketing materials and aggressively marketed the property over a period of 60 – 90 days. We received several expressions of interest and three LOI’s. We ended up choosing a buyer who we thought was the best fit, but they were very difficult and demanding. Ms. Peterson worked diligently with the buyer and their representatives to close the transaction, when it appeared on several occasions that it would fall through.
The transaction provided a healthy return to the investors. I’m convinced that without Ms. Peterson’s steadfast approach, the buyer would have walked and we would have lost the sale.