The project was capitalized with $14.8 million of equity, according to an SEC filing, of which Fairfield Residential provided $3 million. BREOF Baileys, LLC, a third party unaffiliated with BH or the developer, contributed $11.8 million in cash; in addition the project was also capitalized with a senior loan for up to $110.7 million. Fairfield Residential provided a repayment and completion guaranty to the senior lender for the project and a completion guaranty to Baileys Venture as mezzanine lender.

Fairfield's financial strength deteriorated significantly since that time and by September 2009, it had triggered a technical default under the repayment and completion guaranty to the senior lender, the filing stated. That, in turn, triggered a technical default on the senior loan and the mezzanine loan made by Baileys Venture.

The project has continued its development, prompting BH to, as it said in its filing, to take advantage "of an attractive investment opportunity" and restructure the terms of the project.

The investment was made through a joint venture between Behringer Harvard Multifamily REIT I, Inc. and PGGM Private Real Estate Fund, an investment vehicle for large Dutch pension funds. Construction of the four-building complex of Bailey's Crossing is approximately 90% completed. Behringer Harvard did not return a call to GlobeSt.com in time for publication.