In an off-market transaction, Epoch was given the opportunity to acquire a defaulted first position note directly from the lender at 60% of face value. The property and note had been in litigation for several years including a borrower bankruptcy proceeding and both the lender and the original borrower were amenable to exiting the property.
We closed escrow on the note purchase the day before the scheduled foreclosure auction, attended the auction at the San Jose courthouse steps and credit bid against other bidders in order to gain ownership and control of the property.
We then executed a full building and landscaping face-lift and renovation, hired a new leasing team and achieved 100% occupancy from 50% in 9 months. The property was then valued at more the double the purchase price allowing a 100% cash-out refinance.