Mortgage Recovery Fund-Alameda, L.P.Slotkin
Property, Los Angeles, CA
The Shopoff Group acquired the Slotkin buildings, part of a $9.4 million defaulted commercial loan portfolio, for 37.4 % of the outstanding balance. These three industrial buildings located in Los Angeles collateralized the mortgages, with a single borrower as the maker.
The team was able to rapidly determine value of the underlying properties and prepare a business plan to maximize return for the investment. In addition, as part of our acquisition, we obtained a loan to finance 78% of our purchase price of the underlying defaulted loans to improve our investment yields.
After a complex negotiation with the debtor, we successfully arranged a discounted payoff, which we completed in less than 136 days for a profit of over $1 million. The Shopoff Group investors received an internal rate of return (IRR) of 86% on their investment – a result which far exceeded the original pro forma of a 27% IRR. Our team was able to arrange acquisition of defaulted loans and acquisition debt, initiate foreclosure and negotiate an expedited payoff to secure superior investment results.
Investing in The Shopoff Group limited partnerships involves a high degree of risk,
including the possible complete loss of your investment. In addition to being an illiquid
investment with an uncertain liquidity date, these investments may have other risks.
The past performance of any of The Shopoff Group's Limited Partnerships is no guarantee of
future results.
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The Shopoff Group
Corporate Headquarters
114 Pacifica, Suite 245
Irvine, California 92618
Main: 949–417–1396
Fax: 949–417–1399