CHINO, CA-Overseas investors specializing in distressed assets have acquired the $22 million first trust deed to a 107-unit fractured seniors condo project for $13.4 million, according to CEO Matthew Mandel of Beverly Hills-based REO Property Specialists, who marketed the note on behalf of the project’s lenders. The project, at 13798 Roswell Ave. near the 71 Freeway and Grand Avenue, consists of 80 two-bedroom and 27 one-bedroom units ranging from 650 to 1,200 square feet―one of which was sold at the time of the note sale―that are designated for residents 55 and older.

Mandel, who was hired by China Trust Bank to sell the first trust deed, tells GlobeSt.com that the note was a participation loan between China Trust Bank and the First Bank of Beverly Hills, which was taken over by the FDIC in late April 2009. Mandel established a $14M asking price and generated six offers from qualified buyers, one of whom was chose at the cash price of $13.4 million but requested a price reduction to $12.6 million two days before the scheduled close of the sale.

Since the FDIC was unable to approve the price reduction of its portion of the note, the FDIC portion subsequently sold at auction to a Beverly Hills bank for an undisclosed sum. After that, the bank that bought the FDIC portion of the note worked in conjunction with China Trust and Mandel to re-market the note at a $14 million asking price.

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