SILVER SPRING, MD-Trigild, a San Diego-based distressed realestate loan recovery and specialist firm, has been appointed thereceiver for the Enclave, a high-end, 1,119-unit apartment buildinghere. Stellar Rental Community, which owns a few other propertiesin the area, was the owner. The firm declined to comment for thisarticle.

Stellar acquired the Enclave at the height of the market as avalue-add play, penciling in exit rents that unfortunately did notmaterialize when the downturn began. It was hardly alone, says AriFiroozabadi, vice president of investments at Marcus &Millichap Real Estate Investment Services. “In the frenzied marketof 2004 to 2007 we saw many investors acquire projects and then goon to invest $10,000 to $20,000 per unit to renovate kitchens,baths and common areas with plans to increase rents by $100 to$250,” he tells GlobeSt.com.

Then the downturn came, Firoozabadi says, and those that weredelivering “rehabbed” units were not able to achieve theprojections. “We have seen many cases over the course of the past12 months where operators have lost control of their properties toforeclosure,” he notes.