"This transaction is a prime example of Pinnacle Solutions and KABR's ability to consistently target and close on nonperforming bank debt in highly challenging economic conditions," Brian M. Stolar, president and CEO of the Pinnacle Cos., tells GlobeSt.com. "We are currently seeing significant deal flow to acquire similar nonperforming loans at substantial discounts. We have the track record, capital and experience in this market niche, having acquired distressed debt and turned around troubled assets, including several thousand residential units, for over 25 years."

With approximately 45% of its homes already sold, Winthrop Court is the last phase of a larger, planned community, Cambridge Crossing, which consists of more than 600 homes. The two-bedroom residences at Winthrop Court range from 1,500 square feet to more than 2,000 square feet. The community also offers penthouses with lofts on the third floor. Prices start in the mid-$200,000s.

Pinnacle Solutions initially worked with the former Winthrop Court development team to help formulate a plan for moving the project forward. When issues posed to the former development team were unable to be resolved, Pinnacle agreed to purchase the note from the lender. "For the lender, a resolution came many months earlier than if Pinnacle hadn't become involved," says Ken Pastermak, principal of KABR Group. "Anytime a bank can mitigate without foreclosure, they can save substantial time and money, while at the same time removing a troubled asset from their books and getting a fair market price for that property." Since 1987, Pinnacle has purchased or invested in a variety of distressed projects, for a total value of nearly $750 million.