High-End Multifamily Goes into Receivership

SILVER SPRING, MD-Trigild, a San Diego-based distressed real estate loan recovery and specialist firm, has been appointed the receiver for the Enclave, a high-end, 1,119-unit apartment building here. Stellar Rental Community, which owns a few other properties in the area, was the owner. The firm declined to comment for this article.

Stellar acquired the Enclave at the height of the market as a value-add play, penciling in exit rents that unfortunately did not materialize when the downturn began. It was hardly alone, says Ari Firoozabadi, vice president of investments at Marcus & Millichap Real Estate Investment Services. “In the frenzied market of 2004 to 2007 we saw many investors acquire projects and then go on to invest $10,000 to $20,000 per unit to renovate kitchens, baths and common areas with plans to increase rents by $100 to $250,” he tells GlobeSt.com.