Market Rate Recapitalization, Asset Management, and Disposition
First Capital was retained as a financial consultant and asset manager of two market rate properties totaling 368 apartment units in Florida. At the time of First Capital’s appointment the properties were at risk of being foreclosed. Over a period of ten years, First Capital refinanced both properties twice and streamlined their operations which resulted in increased cash flow from operations. In the second set of refinancings, First Capital arranged taxable financing by the issuance of taxable bonds to replace a Participating Loan. First Capital also negotiated the termination of a long-term lease with a Fortune 500 company that encumbered the property. In 2005, First Capital located a purchaser and negotiated the sale of both properties to a condo-converter, which resulted in an attractive after-tax return to the owners.
