West Village, Durham, NC

West Village

Note purchase, acquisition and mezzanine loan

Asset Summary:  Historic rehab of tobacco warehouses into 453 apartments and 120,000 square feet of commercial space

Date Closed:  2011 & 2012

Investment Strategy:

  • Purchased defaulted note from a bank and negotiated acquisition of initial phase from borrower who had defaulted on the mortgage
  • Recapitalized second phase with mezzanine financing to pay off creditors and provide tenant improvement proceeds for commercial space
  • Phase III under construction in 2013: new 150 unit $23 million development

Exit Strategy: Sale or refinance after Phase III units are completed and stabilized