Midwest Properties Illinois LLC – SC&H Capital was retained to seek an investor or buyer for this multifamily property consisting of 153 apartment units, 11 condo units, and an owner’s residence. The company had recently emerged from chapter 11 and was operating under an approved plan of reorganization. However, the payment structure approved by the court left little cash flow to properly maintain the property, the operation was losing tenants, and the relationship with the senior lender, already strained due to the bankruptcy, was being tested.
SC&H conducted an exhaustive marketing process that resulted in 25 groups conducting due diligence and 4 offers. The owner decided to move forward with a negotiated sale to a local real estate investor. SC&H negotiated an agreement with the senior lender to accept less than the full amount owed and was able to overcome some last-minute issues that threatened to jeopardize closing to complete the sale.