Case Studies
Successful Revival of Distressed HUD Section 8 Properties
In a time-sensitive endeavor, three HUD Section 8 properties in the upper Midwest, on the brink of tax lien sales, faced a remarkable transformation. Within 30 days, five offers were secured. Negotiations with HUD and a private lender led to a crucial guarantee, enabling payment of overdue taxes. Despite dire property conditions, a Bond/LIHTC-based buyer was chosen for their capacity to address capital needs. They also committed to an immediate cash purchase of the most troubled property, motivating them to close on the entire portfolio. Post-governmental approvals, all three properties were successfully sold. This strategic move allowed family owners, grappling with second-generation ownership and properties that had never been profitable, to net over $2 million.
Key Outcomes:
- Successful divestment of family-owned properties that had never turned a profit.
- Net proceeds exceeded $2 million, relieving the family of financial burden.
- Bond/LIHTC buyer committed to extensive property rehabilitation, resolving years of neglect.
Hotel Redevelopment - Orlando, Florida
The redevelopment endeavor faced formidable challenges, including the imperative need for historical preservation, zoning constraints, budgetary limitations, and fierce competition. However, the project’s success rested on a multi-pronged strategy. This strategy encompassed extensive market research, sustainable design principles, meticulous preservation of the historical facade, innovative amenities, and a robust marketing approach.
Key Outcomes:
- 25% surge in occupancy rates, demonstrating its newfound popularity and appeal.
- 15% rise in room rates, reinforcing its position as a top-tier destination in Orlando.
- LEED certification for sustainability, validating its commitment to environmentally responsible practices.