Situs Sells Premier Urban Condominium Complex Out of Bankruptcy

HOUSTON, Nov. 10, 2010 /PRNewswire/ -- Situs Inc represented the Bankruptcy Trustee in the successful sale of the Gramercy Park Condominiums, a luxury mid-rise multi-family asset located in the prime Medical Center submarket of Houston, Texas. Situs actively exposed the fractured condominium property to the market over the past year during protracted court proceedings.

(Logo:  http://photos.prnewswire.com/prnh/20100927/NY71477LOGO )

(Logo:  http://www.newscom.com/cgi-bin/prnh/20100927/NY71477LOGO )

The property was constructed in 2005/2006 and was financed by 230+ individual investors. In 2006, various entities that controlled the servicing rights initiated a series of bankruptcies with Asset Resolution, an entity affiliated with Silar Advisors, LLC, ultimately controlling the servicing. The property was foreclosed in late-2008, and 220 units remained unsold.

Situs began marketing the property in September 2009. Shortly thereafter, Asset Resolution filed chapter 11 bankruptcy in New York. The proceedings were transferred to Nevada, and ultimately converted to a Chapter 7 bankruptcy case in January 2010.

Situs continued to market the asset and generate offers throughout the contentious legal proceedings. A total of 24 offers were generated. According to David Malev of Situs Inc, "There was a great deal of interest in the property from a variety of buyers due to its location and the fact there are very few, if any, larger sites with comparable visibility in this market area. The biggest challenge was keeping buyers interested during an extended period of litigation."

Mitch Siegler, senior managing director of Pathfinder Partners, LLC, represented CCM Pathfinder Gramercy Court, LLC, the largest investor in Gramercy Park, and worked closely with Situs in structuring and negotiating the transaction. "Situs demonstrated tremendous patience, perseverance and creativity throughout a long and arduous process, and worked diligently to keep the parties together and the deal moving forward," Siegler said.

On September 7, 2010, the US Bankruptcy Court conducted a 363 auction in Reno, Nevada. Situs was critical to the auction process and was able to identify and negotiate terms with the stalking horse bidder, Alliance Realty Partners, LLC, who ultimately closed on the property.

The Situs team was led by Martin Bronstein, and included David Malev, Randall Tuller, Maury Bronstein, and John S. Wall, Jr.

About Situs

Situs Inc is the brokerage arm of The Situs Companies, a leading provider of global commercial real estate advisory services to the financial services industry. Since 1985, clients have relied on Situs' experience, insight and best-in-class processes. Combining creativity, flexibility and strategic planning, the company offers life of the loan solutions from due diligence to disposition. The company is recognized throughout the industry for consulting, advisory, servicing, outsourcing and disposition solutions. More recently, the company added capital markets and platform restructuring expertise through its affiliate, Oasis Real Estate Partners. Situs is headquartered in Houston and has offices throughout the United States and Europe. Visit our website at www.situscompanies.com.

SOURCE The Situs Companies