(Mark Your Calendars: RealShare DISTRESSED ASSETS, October 4-5 in Grapevine, TX).
SAN FRANCISCO-Tustin, CA-based real estate investment banking and advisory firm, Bridgeport Investments, has successfully arranged a $14 million, equity investment in just 20 days by creating a joint venture partnership on behalf of its client, CapRock Partner, GlobeSt.com has learned. Bridgeport identified and arranged an institutional investor to joint venture with CapRock on the acquisition of a note secured by a vacant industrial building in the San Francisco Bay area.
“This is a key example of capitalizing a hairy deal,” according to Bridgeport Investments’ founding principal Randy Bramel. “It’s unusual to have a loan acquisition opportunity with a loan that is in default, with the borrower in bankruptcy, and a vacant property, and yet successfully arrange a closing in just 20 days on an all-cash basis with an institutional partner.”
The note was purchased for cash at a significant discount from the face value. The opportunity to purchase the distressed loan was presented to Bridgeport by its client with a very short time frame, which required quick action to capture the opportunity, according to Bramel. Bridgeport’s client had just 20 days to negotiate the purchase, complete due diligence, finance, and close the transaction before the end of the second quarter, which the seller, a regional bank, required, according to Bridgeport.
Due to the size and nature of this transaction, an institutional investor with an entrepreneurial mindset was required. “We were able to get an institutional investor quickly engaged on this transaction based upon the relationship Bridgeport had with the investor and with the quality, relationship, and reputation of our client,” Bramel says. “During this process, our team was focused on the strategic, financial, and JV partnership matters with the investor, which freed up CapRock to concentrate on legal and property level due diligence issues to allow them to close escrow by the end of the quarter.”
Pat Daniels, COO at CapRock points out that “As our strategic partner, Bridgeport was instrumental in bringing not just the capital to the deal to allow us to close in 20 days, but selecting an investor for CapRock Partners that shares a similar mindset and approach to the business, with whom we hope to have a long and prosperous relationship.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
