Case Study: Golf Course & Residential Development

Situation: 18-hole golf course and 950 residential lots, 762 which were undeveloped, with PUD and master drainage approvals in place. Company needed to sell the assets as a result of a loss of funding.

Planned for a 550-acre upscale, gated residential development which included a golf course and associated amenities, 43-acre fishing lake and 950 residential lots
Company declared bankruptcy as a result of a dispute with the same lender over several projects
GCP was hired as investment bank to the bankruptcy estate
Lack of alternative financing created a need for a buyer

Solutions:

Executed an extensive marketing effort of the assets
- Contacted over 400 potential buyers
- Developed and populated data room with due diligence materials
- Surfaced over 40 interested parties
- Worked with interested parties to produce 8 offers to purchase the assets
Set up a 363 sale
- Located stalking horse bidder
- Assisted with the drafting of bidding procedures, sale motion and asset purchase agreement
- Completed due diligence on targets and position to close

Results:

A successful 363 sale took place with 8 qualified bidders participating
Sale resulted in all secured and unsecured claims being completely satisfied
Final purchase price was 200% above the expected value
Equity holders received significant payout
Property was purchased by an experienced developer that completed the project