Sycamore Buys Bank-Owned Fractured Condo Property
- Oct 10, 2011
Reno, Nev.—Sycamore Urban Properties has acquired Talus Point, a fractured condominium property, in Reno, Nev., from U.S. Bank. According to public records, Sycamore paid $4.225 million for the property.
Originally built in 1978 as a 153-unit apartment complex, Talus Point underwent a condominium conversion in 2006, selling only 28 units before market conditions stalled the effort. The remaining 125 units have since been operated on a lease basis. In 2009 the original lender, PFF Bank and Trust, foreclosed upon the property, but it was subsequently taken over by U.S. Bank in a structured transaction with the FDIC after PFF Bank failed.
The 125 Talus Point apartments, located about a mile from the University of Nevada, Reno, range from studios to three-bedroom/2.5-bathroom townhomes, many of which include private garages. The property features a common area lounge, exercise room and pool facility. Eventually, according to Sycamore, it will resume selling the units, but not in the immediate future.
Sycamore says that it will pursue opportunities in fractured condo properties elsewhere as well. “Throughout our targeted sub-markets of Arizona, Nevada and California, we continue to see unfinished condo developments, fractured condo properties—partial sold, remainder rented—and apartments with substandard occupancy rates,” Mitchell Bradford, president of Sycamore Urban Properties, tells MHN. “None of these assets qualify for agency financing vehicles and require ‘special’ bank financing or all cash.”
Bradford adds that his company has “benefitted from a working relationship with various banks that have provided us debt with reasonable leverage and have been able to move fast to fund loans. Without these relationships, we would have been much less competitive when it comes to acquisitions. With our banks support, we can guarantee closing and it has helped us win multiple bids.”
Lance Faulstich of Trinity Commercial and Cory Edge of Edge Realty, both located in Reno, represented U.S. Bank in the deal. Sycamore was represented in the transaction by Greg Rutten of GRu Ventures Inc. in San Diego.