California/Nevada Commercial Portfolio
G8 acquired a $32.5 Million portfolio of non-performing loans located in California and Nevada. The properties securing the loans consisted of newly constructed retail, office and aviation buildings.
Asset Acquired: 272,263 SF
Location: California, Nevada
Investment Year: 2012
Investor Cash-on-Cash Return: 23.07%
Investor annualized (IRR) return: 26.84%
The portfolio consisted of five 1st trust deed notes secured by retail, office and aviation properties in Nevada and California. The portfolio of loans were in various stages of non-performance, ranging from maturity defaults to payment defaults. Following the acquisition and G8’s attempts for a workout with the borrower, G8 completed foreclosure sales on all the properties/assets and became the fee simple owner of the properties.
G8 quickly began the work of stabilizing all of the assets with new management teams, including completing deferred maintenance to preserve value. Within 14 months, G8 had leased and sold off all the retail and office assets in the fund at a healthy profit. The aviation properties represented a uniquely attractive long-term opportunity and with investors the decision was made to hold the assets for cash flow.
