SILVER SPRING, MD-Trigild, a San Diego-based distressed real estate loan recovery and specialist firm, has been appointed the receiver for the Enclave, a high-end, 1,119-unit apartment building here. Stellar Rental Community, which owns a few other properties in the area, was the owner. The firm declined to comment for this article.
Stellar acquired the Enclave at the height of the market as a value-add play, penciling in exit rents that unfortunately did not materialize when the downturn began. It was hardly alone, says Ari Firoozabadi, vice president of investments at Marcus & Millichap Real Estate Investment Services. “In the frenzied market of 2004 to 2007 we saw many investors acquire projects and then go on 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 were delivering “rehabbed” units were not able to achieve the projections. “We have seen many cases over the course of the past 12 months where operators have lost control of their properties to foreclosure,” he notes.
Stellar also owns the Meridian at Bowie, MD; the Avant in Annandale, VA; the Edgmoore in Alexandria, VA; and the Amberleigh in Fairfax, VA. As court appointed receiver, Trigild plans to position the property for a quick sale to avoid a lengthy, expensive foreclosure. Trigild did not return a call to GlobeSt.com in time for publication. Situated on 26 acres, the development also features a 12,000-square-foot amenity center with fitness facilities, a cyber caf
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