San Diego, CA (PRWEB) March 16, 2011
Breakwater Equity Partners, a consulting firm specializing in commercial loan workouts, announced nowadays the effective restructuring of Peacock Gap Nation Club and Spa, a 50-year old golf course positioned in San Rafael, CA. Foreclosure on the 137 acre, 18-hole golf course was averted when a new investor bought the defaulted note from the lender, Nara Bank.

The home was previously owned by Peacock Gap Properties, who purchased it in 2005 for $ ten million with plans to make key improvements to the golf course and clubhouse. The owner took out an further loan for $ six million from Los Angeles based Nara Bank to perform the upgrades in 2007. Following completing the golf course makeover the economy and the genuine estate marketplace took a financial tumble. With the steep drop in golf revenues, the owner started to struggle. By 2008 Nara Bank refused to give funding for the clubhouse renovation. This led to the cancellation of occasion contracts and memberships at the club, causing additional financial distress.

With the asset under serious threat from the bank, the property owner sought out the knowledge of Breakwater Equity Partners. Right after a thorough examination and evaluation of the financials, neighborhood market situations, and the propertys bankruptcy and litigation exposure, Breakwater Equity Partners executed a workout strategy. That technique leveraged significant litigation claims (including a lawsuit alleging damages of far more than $ 20 million against the lender), a Chapter 11 bankruptcy filing, and the deal economics.

A lot of individuals have been caught off guard by the sudden collapse of the economy and real estate industry. I know we werent the only ones hit challenging, said George Lee, preceding Common Manager of Peacock Gap CC. We have in depth knowledge in the hospitality business and thought we could ride it out. We felt we had strong, personal relationships with our bank and tried to perform with them. We heard about Breakwater and engaged their services. Our bankers of 30 years would not listen to us, but Breakwater instantly got their consideration. They got us an extraordinary resolution that I think no 1 else could.

With the leverage of substantial litigation and the stress of a Chapter 11, Breakwater Equity Partners worked with a White Knight investor who bought the note on terms favorable to the client and acceptable to the bank. In the finish the loan was crammed down from around $ 12 million to $ three.four million, a reduction of 71%. Subsequently, the ownership of Peacock Gap was transferred right after bankruptcy court confirmation of the reorganization.

Peacock Gap is a beautiful house and we are delighted with this outcome, stated Phil Jemmett, CEO of Breakwater Equity Partners. We believe that the local neighborhood will be extremely pleased with the stewardship of the new owner. Breakwater is actively performing commercial workouts nationwide across all asset classes, but completing a exercise on a golf course like Peacock Gap demands specialized understanding, as golf courses are a specialty asset with exclusive attributes. Several golf courses are in problems, either in foreclosure, bankruptcy proceedings or behind on their loan payments. Golf course owners are now facing tough challenges and do not know how to resolve their economic difficulties. In many instances, a loan exercise may possibly be the answer to their ultimate survival.

About Breakwater Equity Partners
Breakwater Equity Partners is a privately-owned actual estate consulting firm located in San Diego, CA, supplying industrial loan workout methods and negotiation services to house owners and investors all through the U.S. The Breakwater group, consisting of authorities in finance, banking, true estate and law, has worked on over 175 commercial loan workouts throughout the US, with deep encounter in a wide variety of genuine estate classes, including workplace, industrial, retail, multi-family, mixed use, master-planned communities, residential and land development, golf courses, and farming operations. Breakwater also specializes in Tenant-in-Widespread loan workouts. For more details on Breakwater Equity Partners, please contact 858-490-3630 or go to http://www.breakwaterequity.com. Study our weblog at http://www.breakwaterequity.com/weblog

Media Make contact with
Victoria Cunningham
victoria(at)breakwaterequity(dot)com
858-490-3630 x112

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