Representative Transactions
Distressed Debt (Portfolio Asset) FDIC Structured Sale
- John Schmelzle was key member of Kingston Management Services (KMS) loan work out team
- KMS was the successful bidder on a $1.1 billion portfolio of mostly defaulted real estate loans originated by the failed Arkansas National Bank and sold by the federal government in a partnership with the FDIC
- Prior to Lehman Brothers and Indy Mac, the +$2 Billion ANB Bank was one of the largest bank failures in the history of the United States
- KMS was charged with the servicing and monetization of over 1,000 real estate loans
- In less than one year KMS’s investors received all of their original investment back and is among the top performers of the FDIC structured sale participants
Summary: Having direct hands-on experience on one of the largest portfolios of non-performing loans ever sold, in a partnership with the FDIC has brought an experience unique to only a handful of firms in the nation. The sheer volume of non-performing loans requiring hands on special servicing, workouts and asset management of OREO assets provided the framework for how to effectively manage large pools of distressed assets in order to maximize the values of the individual properties serving as collateral.
Distressed Debt (Portfolio Asset)
- 4th Quarter 2010 Schmelzle & Associates formed CAP FUND I LLC, in a partnership with CAP Management, a business unit of Williams & Dame Development, a highly successful Portland, OR based company with over $6 billion of real estate development experience.
- CAP FUND I was the successful bidder on a $40 million (UPB) portfolio of commercial loans and OREO Assets sold by ANB Venture, the FDIC/KMS partnership.
- Assets are primarily located Northwest Arkansas where ANB Bank was headquartered and consist of hotels, warehouse, condominiums, rental apartments and commercial land
- Schmelzle & Associates serves as the local operating partner overseeing all aspects of loan workout, legal, asset management, and asset disposition
- Plan entails purchasing the pool in bulk at wholesale pricing, cure legal or title defects as needed, convert to fee simple ownership, reposition were necessary and sell each property individually.
- As of 1nd quarter 2013 CAP FUND is exceeding original return expectations.
Summary: This transaction exemplifies our ability to identify an opportunity to acquire a pool of assets at a very low basis relative to current individual market values. The portfolio purchase created an immediate liquidity event for the seller yet provided us the opportunity to employ our collective experience and capital to enhance the assets individually and create superior returns relative to traditional real estate investments.