$150MM mixed use under way after being broken 20 years, $10MM away

[Bob Faulis]

Diary entry One- I just spent a month doing the due diligence, aligning the management team, developing relationship with key players (particularly the lender), and I am almost there.  Well, .. . . was almost there.  

I have sign-off from the equity partner providing the $150MM (a big name).  The total project will have an exit value of $220MM++  I have an agreement to purchase the land at $10MM which is at least $10MM under current value.  I have all entitlements, permits, plans and proformas all complete, but then the seed money evaporated at the last minute. This is a high profile project with some 5 million feet passing in front of the property each year. There are many that want to see this complete. 

I now scurry to see who doesn't have $10MM tied up.. . . so far they are all committed to other projects. I have three maybe five days to pull this all back together.

Keep tuned in. . . we will see where it goes. 

[Bob Faulis]

Diary Entry 12:  Ah, Ha !  You all thought I was gone and dead in the water.... nope, just busy.  Well, the capital is all set for the development and now the acquisition.  We had several sources but are moving forward with our most anxious partner.  The deal is about to clean up  and we need to take action before others jump in.  

It all proved very interesting with much to learn about landing that big deal.  I am now sure that I will be writing a book about the deal to give others a strong understanding as to what it takes to put together a distressed deal.  Our offer should be in today and accepted by Monday- we already had all terms per-approved by the seller.

We are 99.9% there- baring any wild occurrences.  I will update soon with property details and structure. 

Bob