Subdividing Property Leads to Sale at Double Expectations

BVC Partners

Orlando, Florida

Challenge

100 acre Ruby Lake property (undeveloped land). No revenue stream. $35 million debt. Failed development which filed Chapter 11.


  • Development crashed in the Great Recession and developer lost access to development funding.
  • Original lending group agent wanted to sell property for under $20 million but their lenders thought property was worth more than $20 million.
  • Developer had granted restrictive land covenants to hotel chain that has purchased some of the original development which restricted use of the remaining 100 acres to prevent condominium development.
  • Developer filed Chapter 11 to temporarily maintain control of property.

Solution

  • Got relief from stay and foreclosed on property.
  • MorrisAnderson managed Chapter 11 for investor lenders and became property manager post Chapter 11.
  • Marketed property in two sections; smaller highway adjacent tract for hotel development and larger lake tract for residential development.
  • Started marketing process to sell property.

Results

  • Negotiated two sale transaction within 18 months.
  • Sales netted over $30 million which was approximately double the value the original lending group agent was willing to accept.

Daniel F. Dooley

Dan Dooley, CTP, is a Principal and CEO at MorrisAnderson based out of Chicago. He has a strong national reputation in crisis management, operations improvement, debt refinancing/restructuring and C-level positions. He is a frequent speaker at industry conferences and a regular author for industry periodicals. Dan has served on the Board of Directors of both… Read More