Case Number: 5-411-754, Year Published: 2012, Revision Date: March 09, 2016
HBS Number: KEL697
Real Estate, Distressed Debt, Foreclosure, Workout
In 2010 Drive Property Solutions, a special servicing firm in Chicago, had partnered with Spiner Capital to win an FDIC auction of distressed debt. Included in that auction was the defaulted mortgage note on Northwinds Community Crossing, a retail strip mall in suburban Savannah, Georgia, which had been in default since November 2009. Sam Schey, an asset manager at Drive, needed to decide how to maximize recoveries from the nonperforming loan.
After reading and analyzing the case, students should be able to: • Evaluate and compare the various ways of resolving distressed debt • Recognize how defaults on commercial real estate may present opportunities to investors
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