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 15 Non-performing HUD Apartment Loans
AL, AZ, CO, KY, LA,
MS, TX
HUD is a regular
seller of its
non-performing
apartment loans and
PNL has developed
expertise in turning
around these
distressed assets,
most of which have
been mismanaged and
require foreclosure
and renovation by
PNL. Our asset
management team has
repositioned
thousands of
apartment units from
California to
Florida.
 Participating
Mezzanine Loan on 183-unit Luxury Condominium
Toronto, Ontario
The publicly traded
seller of this loan,
Amresco, was in
serious financial
distress and needed
to sell some assets
quickly to meet a
pending bond
payment. To
accommodate Amresco,
PNL negotiated,
underwrote and
closed this
transaction in
approximately three
weeks. We then
worked with the
borrower, the
largest condominium
developer in
Toronto, to bring
the project to
completion and repay
the loan and its 45%
participation
interest.
 Unsecured Working
Capital Notes on
Syndicated
Partnerships
AL, FL, IL, MI, MS
The national
apartment syndicator,
Angeles, made
working capital
loans to prop up
many of its failing
partnerships during
the late 1980s.
Angeles subsequently
went bankrupt and
the party who
purchased its
general partner
interests largely
ignored these
outstanding
obligations until
PNL purchased them
from the Creditors’
Committee. PNL
tripled its equity
in 16 months.
 Mortgage
on
Former Sears Roebuck
Headquarters
Chicago, IL
From 1912 until the
completion of the
Sears Tower in 1973,
this 250,000 square
foot office building
was the executive
headquarters for the
nation’s largest
retailer. Now
located in an
inner-city
neighborhood, the
office property had
severe leasing
challenges and was
subject to a ground
lease. The high
retrofit costs
combined with a soft
office market caused
PNL to sell this
property at a loss.
PNL ultimately sold
the property to a
local developer for
redevelopment into
subsidized
residential housing.
 High
LTV Loan Secured by
36 Residential Lots
La Mesa, CA
PNL acquired this
maturing defaulted
loan from a local
bank and has worked
with the developer
to complete the
infrastructure and
sell the finished
lots to
homebuilders. The
lot development of
this mesa presented
substantial
engineering
challenges but
created exceptional
views to downtown
San Diego and the
Pacific.
 Two Sub-Performing
Loans Secured by 350,000 Square Feet of Office
Dallas, TX
The seller of the
notes was a national
insurance company
seeking to limit its
exposure to the
north
Dallas office
market. The
properties had
significant rollover
risk but PNL worked
with the debtor to
keep the loans
current and
ultimately sold them
several years later
to a major
investment bank.
 Non-Performing
Loan Secured by 57
Condominiums
Bellevue, WA
Typical of many bank
mergers, the
acquiring bank
sought to reduce the
non-performing loan
exposure in the
acquired bank’s
portfolio. The
underlying Library
Square project was
delayed in
completion but
fundamentally
sound. PNL extended
the maturing loan
and worked with the
developer to fund
completion and bring
the project to
success.
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