Lender required support managing a $30.5 million loan secured by 4 hotel properties.
The Lender needed assistance negotiating a very complicated workout that included
receiverships in 2 states, a large government contract, liquor licenses, gaming licenses
and a borrower with complex tax needs.
CusickFinancialwas responsible for managing almost every aspect of the workout process
including foreclosing on one hotel, negotiating friendly foreclosures on the remaining
3 hotels, operating all four properties as either an owner or through the appointed
receiver, working with contractors to make capital repairs, selling one hotel on
a negotiated basis and listing the three remaining hotels with a major brokerage
Assignment lasted nine months and the remaining three properties were handed back
to the client after they were stabilized and listed with the brokerage company. The
client sold the remaining properties during the following year and received a full
recovery of principal and interest.
Multi-Asset Workouts Assignment
Special Servicer needed assistance managing three non-performing loans secured by
a shopping center and two office buildings.
The first loan was a retail shopping center that was located in Las Vegas, NV. The
loan was involved in a complicated bankruptcy proceeding that involved a dispute
regarding the borrower’s ownership. CusickFinancial worked with the trustee to
resolve the dispute through a sale of the collateral to one of the partners. The
sale resulted in a full payoff of the loan.
The second borrower requested a waiver of the prepayment penalty. After assessing
the loan and collateral, meeting with the borrower and discussing the situation with
the client, the request was denied and the performing loan was returned to the master
servicer after the borrower withdrew its request.
The last borrower stopped making monthly payments and requested a discounted payoff
of its loan. After retaining counsel, reviewing the collateral and informing the
borrower that the client expected a full payoff, the borrower disclosed that it was
in the process of selling the collateral. Once the sale was disclosed, CusickFinancialworked with the borrower to sell the property and facilitated an assumption of loan
by the new purchaser. The sale closed and the assumed loan was returned to the master
Single Family Land Development Project
The assignment consisted of managing the development and sale of residential lots
for three housing developments located in northern Virginia and Maryland. All of
the projects were in the final stages of development but the financial institution
failed to perform the required improvements to seek the release of bonds and cash
that had been placed with the county as security. One property was fully sold out
and the other two possessed under 100 salable lots.
After the assignment was awarded, meetings were immediately held with the homeowner
associations to quickly identify areas of deferred maintenance that needed to be
repaired. Most of the sensitive areas of deferred maintenance consisted of road
repairs and landscaping.
After meeting with the HOAs, punch lists were requested from each county to ascertain
the actual work that needed to be completed to release the bonds and cash collateral.
In Fairfax County, I arranged a meeting to calm a very concerned official that wanted
to call the bond and complete the improvements.
Project engineers were already in place and possessed a good understanding of the
remaining work. Geotechnical engineers were retained to repair a failing storm water
A local developer was retained to handle the remaining work and budgets were created
to fund the remaining improvements. Counsel prepared all of the appropriate AIA
In less than one year, all of the remaining improvements were made, the bonds were
released and the lots were sold.