A spokesman for Right Place and its acquisition arm Red Door Commercial LLC confirms the company has shut down, but had no additional information. The company's web sites are not working, and calls were not returned by deadline.
"I don't know that they're out of business; I think they're basically in 'triage' mode," says a source familiar with the company. "This is reducing their expenses, especially in this market."
Right Place's mission was to acquire class B and class C multifamily assets in growing markets, renovate them, and rent them for three or four years. At that time, the units would be sold as affordable condominiums. Right Place raised acquisition and renovation funds from its pool of investors. The company holds about 2,000 class B and class C units, acquired since 2006.
The company last reported transaction was in May 2008, when it acquired the 90-unit MacArthur Park Apartments at 9616 Long Point Rd. in Houston. At the time, the company's goal was to beef up its Houston presence with further acquisitions. It had all but left the Phoenix market alone, citing lack of demand and poor market conditions.
Another source tells GlobeSt.com Right Place is restructuring and likely trying to reduce the debt it is carrying on the assets before going forward. "They may try to negotiate the debt down, or continue to manage the assets and collect the fees that way," the source notes.
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