Arizona Court: $123M Trigild Sale Approved

The Arizona Superior Court issued a ruling this month that allows San Diego-based receivership and loan recovery specialist ""Trigild"":http://www.trigild.com to sell seven Arizona apartment complexes to Standard Portfolio for $123 million.
[IMAGE]

The 2,759-unit portfolio was abandoned last year by the Bethany Group, an Irvine, California-based real estate and investment firm, resulting in unfinished maintenance, unpaid employees and suppliers, and concerned residents.

The properties were put into receivership in March 2009, according to Trigild president, Bill Hoffman, and are now in escrow.

""Trigild and lender's counsel from the Capital Markets Group of Thompson & Knight won authority from the court for the receiver to sell the properties during receivership and not require the lender to foreclose prior to

[COLUMN_BREAK]

a sale,"" Hoffman explained. ""This was unprecedented-and a major victory for special servicers-as a sale by the receiver brings the properties to market much sooner than a foreclosed property and allows the special servicer to provide assumable financing for the new owner.""

Hoffman told ""GlobeSt.com"":http://www.globest.com that there was a great deal of interest in the properties, which collected about 60 offers.

""The availability of financing for this sale allows us to deliver a much better recovery for the lender-in this case, more than $53 million above the best ‘all cash' price,"" Hoffman said.

Some states forbid such sales by receivers, while others-and the federal courts-provide for receiver sales if the borrower does not object. However, Arizona had no specific rules allowing or forbidding, so despite objection from the borrower's counsel, Hoffman argued that the court do what was most beneficial for all parties.

""In this case, we argued that this judge had wide discretion, and since any guarantors on the loan may have potential liability for deficiencies, the sale at a much greater price benefited them as well,"" Hoffman said.

The portfolio includes the 460-unit Laguna Village; the 320-unit Alante at the Islands and the 374-unit Santana Crossing in Chandler; the 432-unit Whispering Meadows and the 582-unit Tuscany Palm in Mesa; the 395-unit Sienna Springs in Phoenix; and the 196-unit Verrado Park in Glendale.