Urban Smart Growth Asset Advisors

Distressed Situations/Workout Opportunities

Colt Gateway – Hartford, Connecticut

627,000 SF – Slated for Redevelopment into Highly Diverse Mixed-Use Community

Lance Robbins, Principal of Urban Smart Growth was brought to the attention of the distressed nature of the Colt Gateway project in Hartford, Connecticut, after the deliverance of a speech at a Tax Credit Conference in Miami, Florida in February 2008. Mr. Robbins was instantly intrigued by the historical significance of the project as well as its current state of severe impairment. Mr. Robbins quickly learned that his Tax Credit Investor and Commercial Bank Lender from previous USG Projects were invested in the Colt Gateway Project and were confident that his deep understanding of federal and state tax credits, historical rehabilitation and real property law would be of benefit in dissecting the web of entanglements shrouding the project. Mr. Robbins began advisory discussions with the then current asset manager of the project and over the course of 1-year discovered that the project had incurred approximately tens of millions of deficit through various aggressive lending practices, without net economic value to offset the expenditures. In the course of countless discussions, it was brought to light that the project was hopelessly underwater with Lenders ranging from commercial banks to a now defunct hedge fund as well as encumbered with several environmental and tax issues. Mr. Robbins along with professionals from Urban Smart Growth underwent lengthy due diligence to determine that significant underlying value could be created by assuming asset management control of the project and removing the barrage of lien-holders, the former asset manager, as well as cooperating with local Government Agencies who had designed numerous initiatives ranging from a Museum commemorating the Samuel Colt legacy to affiliating the project with National Park Status. Mr. Robbins has been successful in eliminating a majority of the lien-holders through various methods ranging from the acquisition of discounted notes to providing evidence of potentially profitable investments from presently severally, impaired collateral. Through these successful executions, Mr. Robbins has secured and enhanced the position of the current Tax Credit Investor. Mr. Robbins is currently involved in restructuring negotiations with the senior lender of the project to reach an amicable agreement, which will allow for the project to become financially viable after sitting stagnant for more than 2 years, while affording the senior lender the opportunity to recover their entire debt position after the project reaches stabilization.

Urban Smart Growth has strategically devised a project wide rehabilitation plan of the Colt Gateway project, which when completed will consist of a National Park Museum, 262 market rate apartments and over 300,000 SF of mixed-use commercial space (office, retail, restaurant and education). The project has gained significant political and popular support.

Historical Perspective

Mr. Robbins experience with distressed projects dates back to the early 1970’s; first as a real estate workout attorney with a major Los Angeles law firm and then when he authored legislative initiatives to upgrade distressed and earthquake deficient properties in Los Angeles. Mr. Robbins then proceeded to upgrade and redevelop thousands of such units. With the financial meltdown of the Savings and Loan Crisis, Mr. Robbins worked directly with the RTC, FDIC, Banks and private owners/investors through multifamily single asset and portfolio transactions both an advisory basis as well as a participating equity basis. During the most recent credit expansion, as cap rates for multifamily properties contracted significantly across the country Mr. Robbins seeking higher yields, formed Urban Smart Growth in 2004 to invest, redevelop and asset manage historical multifamily and mixed-use projects across the country, utilizing federal historic tax credits. Urban Smart Growth also acquired land holdings for ground-up development. Currently, Urban Smart Growth is represented by on-the-ground professionals in: Los Angeles; Portland, Oregon; Providence, Rhode Island; Wilmington, North Carolina; and New York City.

Future Opportunities

Urban Smart Growth has recently formed Urban Smart Growth Asset Advisors to evaluate workout opportunities in the commercial real estate sector. Urban Smart Growth Asset Advisors will leverage the full breadth of the Urban Smart Growth platform utilizing the optimal synergies that exist between our professionals whose intellectual capital and diverse hands-on real estate experience consists of expertise in: construction management, property law, design, entitlements, marketing, environmental remediation, capital markets and asset management. Urban Smart Growth Asset Advisors is targeting opportunities where the underlying collateral consists primarily of or can be transitioned into multifamily product. Urban Smart Growth Asset Advisors will work directly with public and private lending institutions, individual investors, as well as third party intermediaries on projects in any state of distress, impairment or transition, across the country. Urban Smart Growth Asset Advisors is open to direct investments, participations and pure advisory roles.

For Further Information

Create E-Form Template including Name, Company, Contact and potential project. To be emailed.