Passaic, New Jersey

We found this investment through a special servicer and we agreed to buy the distressed note from the lender and finish the foreclosure process. We had to overcome a number of challenges in this transaction. Key issues were:

• A leaking underground storage tank that needed to be removed
• A second mortgage that had been put in place without the lender's permission
• Missing leases for the majority of the tenants
• Outstanding violations that were years old
• A state of general disrepair

We closed on the transaction in 2009 and quickly converted the outstanding mortgage into fee simple ownership through a deed in lieu of foreclosure. We are currently in the process of improving the asset and managing it.