About Condo Capital Solutions | Track Record

CCS Colorado Portfolio - Denver

CCS closed on its first acquisition in September 2008, when it bought 183 finished condos and townhome units and 974 lots in nine subdivisions in metro Denver. The $18.2 million acquisition price was a 75% discount from the sellers cost. The seller, a national homebuilder, required a closing by the end of its fiscal year, which CCS was able to complete after a quick underwrite and all-cash closing. After closing, CCS financed the project in Dec 2008 with an $18 million loan, which was completely paid off within the first five months of 2009, 18 months sooner than projected. As of September 2009, 159 units have sold, well ahead of pro forma projections.

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Rio del Sol

In September 2008, CCS acquired a First Deed of Trust and Mezzanine Loans (at $97 PSF), with a par value of $24.5 million encumbering the 156 unsold units of a condo project located in Tucson, Arizona. The Villas at Hacienda del Sol project was originally started as a 218-unit luxury gated rental community in 2004. The original borrower acquired the project in 2007 and converted it to condos. As the Tucson condo market continued to deteriorate in 2008, the borrower defaulted on the notes. CCS was able to underwrite both loans and close for cash within two weeks. CCS took title to the property in Feb 2009, by deed in lieu and has plans to rent units to mitigate operating costs and to sellout the units in three years

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Caribe Homes

In December, 2008, Condo Capital Solutions (with 13th Floor Investments) acquired 109 newly constructed condominiums, single family homes and townhouse units in a bulk sale deal from Caribe Homes for approximately $6.6 million. The properties are located within the Isles at Oasis master planned community, in Homestead, Florida.

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Bridgeview

In August 2009, CCS acquired the remaining 64 units (of 104 total) at Bridgeview at Hayden Ferry Lakeside at $154 per square foot (a 65% discount to cost). The project is a high-end 12-story condo tower located on tempe Town Lake in Tempe, AZ. The developer, SunCor Development Company, completed construction in 2008, and sold 40 units at an average price of $986,000 ($566 PSF), but was unable to sell all the units as the market deteriorated. CCS closed quickly with all-cash and plans to sellout the units by 2012 at an average sales price of $289 per square foot.

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Oceans Edge

Originally built in 1972 as a rental property, Ocean's Edge has a prime oceanfront location in Jacksonville, FL. A Developer renovated and converted the building to condos in 2006, and in July 2009, CCS acquired 107 unsold units from KeyBank at $94 per square foot after the bank foreclosed the property. The original developer had sold 75 units at an average price of $300,000 ($251 per square foot) before losing the property to the bank. CCS plans to sell the units at an average price of $189 per square foot between 2010 and 2012.

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Aderra

In August 2009, CCS purchased the note for Aderra, an upscale condo community in North Phoenix, from the construction lender, AmTrust. With 136 out of 312 units already sold by the developer at an average price of $290 per square foot, CCS purchased the note for the remaining units at $97 per Square foot. When foreclosure proceedings are complete (est. Dec 2009), CCS plans to offset holding costs through an agressive marketing program to increase sales velocity.

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Corriente

Acquired with Aderra from Amtrust, CCS bought the note for the nearby Corriente condos in August 2009. The community currently consista of 38 upscale homes in three-story buildings, of which four units have been sold for an average price of $280,000. When foreclosure proceedings are complete (est. Dec 2009), CCS will control the unsold units and permitted land, and plans to sell the remaining units and complete construction on the unfinished lots.

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Chestnut Condominiums
Buying a Fractured Condo Deal

Following the severe housing downturn of the early and mid-1980s, condo conversions in Denver all but ceased. This property re-tapped the reviving demand for condos that had built in the prior condo boom. This project was a fractured condo deal, from which we purchased 67-units (out of approximately 280) that had been reverted to rental. The subsequent marketing and sale of these units as individual condominiums was the first successful condo conversion in the Denver market in a decade. The project was acquired in 1995 and all condominium units were sold within a six month time frame - 12 months ahead of the proforma schedule. Our success in restarting the condo market was due to our ability to buy at a significant discount, which allowed us to offer inexpensive housing.

Total IRR to Equity on Completion: 86.9%

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Saddle Brook at Rock Creek
Taking Advantage of the Design

Although this project was originally built as a rental community, the quality of the project, which was designed using townhouse plans, made it an excellent candidate for conversion. Further, the project is located near Boulder, Colorado. Because the property was constructed in 1997, only minor interior renovation was required. The units feature distinctive interior finish, including crown molding, lofty nine foot or vaulted ceilings, island kitchens and central heating ad air conditioning. Each home offered a dedicated garage with automatic opener and private balcony. Most offered built-in fireplaces. The new, upscale five-anchor Flatirons Crossing Mall is located adjacent to the project. Moreover, with companies like Level 3 and Sun Microsystems within walking distance of the property, these condominiums appealed to workers at these nearby companies (many of whom were renting at the project). Saddle Brook also attracted people who appreciated the comfort and security of a gated community.

The project was sold out by August 2001 with an aggregate sellout value in excess of $55 million.

Total IRR to Equity on Completion: 101.2%

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University Court Condos
Reviving a Fractured Condo Deal

This 32-unit project was located in Fort Collins, and was purchased in July, 1996, from the FDIC as a fractured condo deal that was being operated as apartments. Prior to our acquisition the project had been foreclosed as a "busted condo" deal and most units reverted to for rent apartments. The property continued to operate as an apartment building for the first year since many of the leases had been renewed for the start of the Colorado State University school term prior to the sale. The marketing of the property as condominiums began in the spring of 1997. The project was converted to condominiums and sold by August of 1998.

Total IRR to Equity on Completion: 49.06%

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La Solana Condominiums
Turning a Distressed Apartment Deal into a Successful Condo Deal

In May 2003, the CCS partners acquired a lender-owned prject which had failed as an apartment deal. Seeing the opportunity to take advantage of an active for-sale market, the CCS partners purchased 180 units in Sun City, Arizona for conversion through Sun City Condos, Inc. The second phase, consisting of 72 units, was purchased in September 2004. The project was completed in January 1999 and is part of the Sun City Grand community geared to senior citizens 55 years and older. Amenities include full access and membership to the extensive recreational facilities of Sun City Grand (including 4 championship golf courses) as well as community transportation, elevators, resort-style pool area, spa, and covered parking.

Unit sales began in November 2003 and all units are closed with an aggregate sellout value was in excess of $27 million.

IRR to Equity on Completion: 252.2%
IRR to Mezzanine: 38.6%
Total IRR, Capital and Mezz: 149.81%

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Snow Blaze Condominiums
Failed Condo in a Mountain Resort

The partners purchased 48 units out of a larger project that had failed as a condo and was recently lender-owned. The property was acquired in October, 1996 for $69/sq. ft., and the units were sold at an average price of $110/sq. ft. by May of 1997, significantly ahead of the 18 month pro forma schedule. Marketing was successfully directed to the niche of 2nd home buyers seeking affordable mountain resort property.

Total IRR to Equity on Completion: 310.87%

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Stonegate Village Condominiums
An Opportunistic Flip:

Comprised of 234 units, and located in the rapidly growing area of Chandler Arizona, the CCS team purchased this project in July, 2005 for $26.5 million. Another condo developer immediately showed interest in the project. Recognizing signs of a potential "housing bubble," after completing the plat approval process, the project was sold in February, 2006, netting a profit of over $5million.

Total IRR to Equity on Completion: 1,206.8%

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Ventana Canyon View
Entering the Second Home Market

The CCS team acquired this asset in December, 2000, after perceiving the Tucson market was poised for growth, and undersupplied for affordable housing, in the highly desirable Santa Catalina Foothills area. Ventana Canyon View was a near-perfect candidate for conversion. Located adjacent to Lowe's Ventana Canyon Resort, on the edge of Coronado National Forest, the complex offers scenic views of the city and Santa Catalina Mountains.

Ventana Canyon View featured walk-in closets, wood-burning fireplaces, ceiling fans, full size washer and dryer, and cable hook-ups. Two clubhouses provided affordable luxury with wood-burning fireplaces, a heated swimming pool and spa fitness centers.

All 226 units were sold out by Spring 2003 with an aggregate sellout price of over $30 million.

IRR to Equity on Completion: 225.79%
IRR to Mezzanine: 90.27%
Total IRR, Capital and Mezz: 127.31%

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Pinnacle Canyon Condominiums

The partners acquired this apartment complex in August, 2005, following the strong Tucson successes at Ventana Canyon View and Tierra Catalina. As the housing market slowed, it was necessary to discount pricing and aggressively market units in a competitive Tucson condo market. This project is nearly complete, with only three units remaining for sale.

IRR to Equity on Completion: 80.07%
IRR to Mezzanine: 29.26%
Total IRR, Capital and Mezz: 52.18%

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Stillhouse Canyon
Adapting to Outside Shocks (Recession and 9/11)

The project, which was built in 1985, is located on over 20 acres of heavily wooded canyons in the Northwest Hills area of Austin, Texas. The CCS team acquired the 180-unit deal in May 2001. Despite the age, the units were already nicely appointed, and featured nine foot ceilings, European style cabinets, fireplaces in all living areas, oversized walk-in closets and a large, private outside deck or patio, so very little additional capital was required to upgrade.

However, the Austin tech bust and the terrorist attacks of 9/11 occurred in the middle of construction and marketing. In the face of this market turmoil, the CCS marketing and sales team stayed focused to maintain momentum and aggressively close units. Prices were discounted, upgrades offered and broker incentives kept sales momentum, despite Austin's tech recession. The hard work paid off - by September 2003, all 180 units were sold.

IRR to Equity on Completion: 21.62%
IRR to Mezzanine: 10.17%
Total IRR, Capital and Mezz: 14.45%

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University Park Tower
Adding Value through Construction Solutions

This 134,147 square foot, 125 unit high-rise apartment complex located in downtown Denver across from Denver University was purchased in June of 1999. In order to add value and increase sales velocity, the exterior design, which was obsolete and unattractive, was changed. The retrofit included enclosing the North balconies to create additional two-bedroom units. The remodel also included, bathroom upgrades (including new vanities, flooring and tile) and a complete kitchen remodel including new cabinets and appliances and construction of a peninsula/bar which opens to the living/dining area. All units were converted and sold as individual condominiums by April 2001 with an aggregate sellout value in excess of $20 million.

Total IRR to Equity on Completion: 83.66%

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Tierra Catalina Condominiums
The Right Timing and Place:

Following our experience with Ventana (see header on left), the CCS team became convinced there remained an untapped niche in the highly desirable Catalina Foothills submarket of Tucson. When the Tierra Catalina Apartments became available for acquisition, the CCS team moved aggressively to acquire and convert the project. Originally built in 1984, near the Santa Catalina Mountains offered scenic views of the mountains and the city. The units average over 1,200 square feet and include pool, sauna, clubhouse and a tennis court. The units include new appliances including washer/dryer, fireplaces and private patios/balconies.

The niche was clearly untapped - the units were made available to the public in March 2005 and sold out in less than three hours (although it took a year to remodel and deliver completed units).

IRR to Equity on Completion: 71.17%
IRR to Mezzanine: 31.49%
Total IRR, Capital and Mezz: 47.22%

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The Preserve Condominiums

This 107,375 square foot, 107 unit apartment complex located in Salt Lake City, Utah was purchased in June of 1999 in anticipation of the 2000 Winter Olympics. Since the property was built in 1994, very little interior renovation was required. All units were sold as individual condominiums by February 2002.

Total IRR to Equity on Completion: 11.4%

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Park Place Condominiums
A Denver High Rise

This 94,000 square foot, 97 unit apartment complex located in the Denver Capital Hill area was purchased in July of 1998, by partners unrelated to CCS. A mezzanine loan was provided by CCS affiliates to the condo conversion partners, enabling them to acquire and convert this high-rise. At the time of acquisition, the Capital Hill area was attracting young, generally affluent professions attracted to the area's ambience and its nearness to the Denver central business district. As of January 2000, all of the units had been sold as individual condominiums.

Total IRR to Equity on Completion: 44.8% (Mezz only)

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Terrace at Cherry Creek Condominiums

This 60-unit apartment complex located in Englewood (a suburb of Denver) was acquired in late 1995. All of the 60 units were converted and sold as individual condominiums by April of 1997.

Total IRR to Equity on Completion: 19.77%

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The Palm Condominiums

This 48 unit project was acquired in June, 2005 for $3.5 million, due to its excellent location in the high-growth Northwest Austin submarket. The unit mix and all-townhouse floorplans made this an excellent candidate for conversion. Interiors were updated and upgraded. Thanks to an exceptional in-field team, sales were brisk, with the total conversion completed by late 2006; ahead of budget and ahead of schedule.

IRR to Equity on Completion: 69.42%
IRR to Mezzanine: 65.54%
Total IRR, Capital and Mezz: 67.64%

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The Catalonian At Cherry Creek North
Adding Value through Creative Re-Use

This 52,000 square foot former office building, located in the upscale Cherry Creek North area of Denver, was purchased in the summer of 1998. The conversion required that the building interior be gutted and completely rebuilt, including a new exterior skin and replacement of nearly all systems (HVAC, elevators, etc.) This transformed the obsolete office building into 44 luxury condominiums, including four penthouses which were added to the structure. By November 2001, all 44 units were sold.

Total IRR to Equity on Completion: 34.41%

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Hansen Meadows Condominiums
Updating a "C" Product in an "A" Market

In April 2004, CCS partners purchased the 40-unit High Teton Apartments, in the heart of Jackson Hole, Wyoming for conversion. Because the project was completed in the 1970's, it had significant deferred maintenance and required extensive renovation that effectively took the units down to the studs. The units were completely redone and over $50,000 of work per unit was added over a period of nine months. The effort paid off - when the new units were put on the market, all 40 units were sold within one week with an aggregate sellout of over $7 million.

IRR to Equity on Completion: 152.93%
IRR to Mezzanine: 45.62%
Total IRR, Capital and Mezz: 117.56%

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Village Pines Condominiums
Providing Value to Entry Level Buyers

This 39,920 square foot, 40 unit apartment complex located in southeast Boulder was purchased in January of 1998. The typical buyer was a young professional seeking entry level housing within Boulder's pricey residential market. All of the 40 units were converted and sold as individual condominiums by March of 1999, four months ahead of the 18-month schedule

Total IRR to Equity on Completion: 82.61%

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Summer Hill
A Consulting Project by CCS

This 33-unit apartment complex is located at Holly and Arapahoe in unincorporated Arapahoe County (suburban Denver), Colorado, and was purchased in July of 1996. All of the 33 units were completely converted and sold as individual condominiums by February of 1997, significantly ahead of schedule.

Total IRR to Equity on Completion: n/a

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Skyline Village Condominiums

The CCS team acquired Skyline Village Condominiums, a 168 unit project in Tucson Arizona, in November, 2005. Renovation and repositioning has cost approximately $5,000,000. Located adjacent to the upscale and newly developed La Encantada mall in the Tucson foothills, Skyline offers a prime location with many nearby amenities. Sales commenced in June, 2006, and are continuing according to plan (but at lower prices than pro forma) with an expected sell-out by December, 2008.

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Boulder Canyon at La Reserve

Boulder Canyon at La Reserve was acquired in September 2005. Built in 1995, Boulder Canyon's 240 units will require approximately $3.5 million of renovation. Sales began April, 2006 and are proceeding more slowly than plan. Aggressive price discounting and creative market have helped revive sales in a different housing market. Nevertheless, the project is expected to have an aggregate sales price of over $50,000,000 and to show a modest profit.

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Ceniza

This deal is a 42-unit conversion located in south Austin. The CCS team acquired in June, 2007, acknowledging a difficult housing market but an "A" team capability with our Austin partner. The team was attracted to the large unit size and convenient access into the Austin CBD. The units are being significantly upgraded and modernized, with construction and sales expected to be complete by early 2010.

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