Mandel, who was hired by China Trust Bank to sell the first trust deed, tells GlobeSt.com that the note was a participation loan between China Trust Bank and the First Bank of Beverly Hills, which was taken over by the FDIC in late April 2009. Mandel established a $14M asking price and generated six offers from qualified buyers, one of whom was chose at the cash price of $13.4 million but requested a price reduction to $12.6 million two days before the scheduled close of the sale.
Since the FDIC was unable to approve the price reduction of its portion of the note, the FDIC portion subsequently sold at auction to a Beverly Hills bank for an undisclosed sum. After that, the bank that bought the FDIC portion of the note worked in conjunction with China Trust and Mandel to re-market the note at a $14 million asking price.
Mandel says that the second round generated 14 offers in 10 days, varying from $4 million to $14 million, and including a $13.4 million offer from the same buyer who had previously bid $13.4 million and who ultimately bought the note. This time, the bidder closed within 10 days.
The overseas group of investors who bought the note was established to purchase distressed assets in the US, according to Mandel, who adds that the group's managing member lives in the US. Mandel says that, according to the developer of Ivy Gardens, the project cost $35 million to build.
In addition to the 107 units, Ivy Gardens includes an indoor heated pool and a recreation room, a gym and workout area, a putting green and a koi pond. A 55,000-square-foot retail center that is adjacent to the condos and was built by the same developer but was not part of the note sale. The condominium project is a gated community within a master-planned project that is within walking distance of more than one million square feet of retail shops and a medical plaza.
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