CHARLOTTE, NC-This week, Mountain Real Estate Capital, a locally based real estate company specializing in the buying and disposition of distressed assets, announced it had purchased a portfolio of 135 residential communities most of which are located in counties surrounding Atlanta.
The portfolio, which was sold by Synovus Bank, had a prior basis of $110 million, based on what was owed to the bank, but Arthur Nevid, chief investment officer for Mountain, did not reveal what his company actually paid for it, except to say that it was a discounted price.
There is a lot variability in the amount of discounting taking place today. But, on average, for commercial and residential properties, if they are non-income producing, or minimally-income-producing, they usually sell for between 25% to 30% of the original price, says David Walmsley, executive vice president at the Atlanta-based Jordan Co., a commercial real estate investment brokerage firm specializing in lender-owned assets. Included in this category are partially-completed subdivisions, partially-completed homes, fractured condominiums and office buildings with low or no occupancy.
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