IN THE NEWS
The Pinnacle Companies and KABR Group Acquire Nonperforming Loan for 39 Residences at Winthrop Court in Clifton, N.J.
Region’s Leading Advisory and Workout Firm Teams with Respected Opportunity Fund to Purchase Homes at Substantial Discount
MONTCLAIR, N.J., (April 15, 2010) — On the heels of having taken over the development of more than a dozen distressed projects in New Jersey and Connecticut, Pinnacle Solutions, the workout subsidiary of The Pinnacle Companies and the KABR Group today announced their purchase of a nonperforming construction loan for 39 unsold residences at Winthrop Court, a community of 270 luxury homes in Clifton, N.J. Pinnacle will now commence the sales and marketing of these residences, which were purchased at a substantial discount from their original face value.
A leading advisory and workout firm which services investors, lenders and other developers confronted with projects and investments that have been negatively impacted by the real estate recession and depressed economy, Pinnacle Solutions and its financial partner, KABR Group, were able to acquire these residences at a substantial discount – 65 percent less than the outstanding balance on the loan.
“This transaction is a prime example of Pinnacle Solutions’ and KABR’s ability to consistently target and close on nonperforming bank debt in highly challenging economic conditions,” stated Brian M. Stolar, President and CEO of The Pinnacle Companies, parent company of Pinnacle Solutions. “We are currently seeing significant deal flow to acquire similar nonperforming loans at substantial discounts. We have the track record, capital and experience in this market niche, having acquired distressed debt and turned around troubled assets, including several thousand residential units, for over 25 years.”
With approximately 45 percent of its homes already sold, Winthrop Court is the last phase of a larger, planned community, Cambridge Crossing, which consists of more than 600 homes. Secured by a guarded gatehouse, with just 30 homes per building, the residences at Winthrop Court offer two bedrooms and from 1,500 to more than 2,000 square feet of living space. The community also offers penthouses with lofts on the third floor. Prices start in the mid-$200,000s.
“We are very excited about the possibility of seeing Winthrop Court completed,” stated Matthew Trella, president of the board of directors of Winthrop Court’s condominium association. “We’ve been sitting in limbo for several years now, so it’s wonderful that Pinnacle is presenting a plan that will get things moving again and will eventually bring the community to total fruition.”
An outgrowth of The Pinnacle Companies, a firm with a more than 25-year track record developing many of the New York metropolitan area’s foremost signature properties, Pinnacle Solutions initially worked with the former Winthrop Court development team to help formulate a plan for moving the project forward. When issues posed to the former development team were unable to be resolved, Pinnacle agreed to purchase the note from the lender.
“Pinnacle’s tremendous amount of experience working with similarly distressed properties greatly benefited all parties involved in this deal,” stated Ken Pastermak, principal of KABR Group. “For the lender, a resolution came many months earlier than if Pinnacle hadn’t become involved. Anytime a bank can mitigate without foreclosure, they can save substantial time and money, while at the same time removing a troubled asset from their books and getting a fair market price for that property. ”
According to Stolar, KABR Group’s involvement was also integral to completing the note acquisition.
“KABR is an extremely creative, value-minded investor,” Stolar said. “It is one of the few companies in the region that is willing to combine a thoroughly analytical approach with a forward-thinking mindset, creating value where others aren’t able to see it.”
Pinnacle Solutions builds on its parent company’s extensive knowledge, innovative approach and deep resources to devise and execute successful workout solutions for a myriad of project types. Since 1987, Pinnacle has purchased or invested in numerous distressed projects, representing total valuations exceeding $750 million.
For more information on the services offered by Pinnacle Solutions, visit www.pinnaclesolutionsUS.com or www.pinnaclecompanies.net
About Pinnacle Solutions
Pinnacle Solutions is a leading provider of workout solutions and asset management services to property owners, developers, lenders and investors who are confronted with challenging real estate projects and investments. Pinnacle Solutions is an outgrowth of demand for the creative, problem-solving experience of the Pinnacle Companies – a firm with a more than 25-year track record of developing many of the New York metropolitan area’s foremost signature properties. Pinnacle has focused particularly on residential and urban mixed-use projects and has significant experience in retail, hotel and office projects, including more than $750 million in distressed real estate assets and projects. For more information on the services offered by Pinnacle Solutions, visit www.pinnaclesolutionsUS.com
About KABR Real Estate Investment Partners
KABR Real Estate Investment Partners, LLC, founded in 2009, is dedicated to the timely and opportunistic purchase of select real estate assets in the New York metro region and South Florida. Its founders are experienced real estate professionals and proven entrepreneurs. They currently own and operate a diverse portfolio of properties in several states that have exhibited stellar returns. Investments targeted by KABR lend themselves to significant further enhancement via detailed and value-oriented management. The firm aims to financially re-leverage the appreciated properties and reinvest the cash flow to acquire additional assets.