Hayward Hotel
601 South Spring Street
Downtown Los Angeles

The Client

• Pacific Investments

The Challenge

• To acquire a Section 8 Hotel for a reasonable price, which was adjacent to the Buyer's property.  Property was negatively impacting Client's other real estate investments in the area.

The Solution

• Developed a relationship with the property receiver to access due diligence files.
• Established pre-transaction thresholds with bondholder in control of the asset to reach "conceptual agreement" on a transaction structure agreeable to both Buyer and Seller.
• Utilized contacts within Los Angeles City Government to determine legal notice requirements and obstacles to ownership change and asset use change that affected policy mix of housing agencies.
• Negotiated partially funded foreclosure process specific to property and requirements of Buyer and bond holder group.

The Results

• Two years after contract execution, successful foreclosure was achieved, Buyer acquired property and renegotiated terms of public housing agreement, thereby removing substandard tenancies and raising area property values.