Ivy Chase

John Burpee & Associates is proud to present a rare off-market note purchase opportunity for a 60-unit apartment complex located in Hudson Fl.​ The Ivy Chase Apartments is located at 14611 Ivy Chase Lane, Hudson Florida 34667.​

The Collateral:

The note & mortgage are secured by Ivy Chase Apartments and are personally guaranteed by Ms.​ Gale Curtis (Wife of deceased developer John Curtis).​ Ms.​ Curtis has been vented as very collectable with substantial personal and corporate assets including two adjacent apartments complex on the same street as Ivy Chase.​ The property is 50% occupied with a waiting list for available units.​ Our sister firm Radiant Asset Management of Florida has managed the assets since our firm was appointed receiver.​ The property was developed as a LIHTC asset originally financed with Florida Housing.​ The LIHTC will be removed at time of foreclosure allowing this asset to be a market rate property.​

The remaining 50% of vacant units have the following issues:

2 units are stripped to the bare studs due to a dryer lint line fire prior to our appointment as receiver.​ As the receiver I immediately filed an insurance claim and was awarded damages.​ These funds were used to replace all the roofs on the property except for one building.​

There are 8-10 units that will require significant renovations with rotted wood floors in second story units due to water intrusion prior to our appointment as court receiver.​ Several units may require floor joist replacement or structural support to secure the second floor.​ Note: These are limited areas and not the entire second floor of the unit.​ The areas are limited to water intrusion was left unchecked by current ownership prior to our firm’s appointment.​

The remaining 18 units are estimated to be a heavy turnover without any structural issues but will require all new appliances, HVAC equipment, flooring, kitchen & bath cabinets and complete interior rehabs.​

Sewer System:

The property is currently serviced by a private sewer system owned and operated by the debtor.​ The system also services the debtors’ other two adjacent properties.​ There is an alternative sewer available at the property and the property can be disconnected from the debtor’s private system.​ The receiver has engaged and given deposits to an engineering firm to draft plans and schematics for the design or a lift station and new sewer line to disconnect the property from the debtor’s private system.​ NOTE: The county has advised the debtor CANNOT disconnect or stop servicing the Ivy Chase Property no matter what the outcome of the foreclosure.​ The receiver has met with the county attorney and engineering department heads and has written confirmation of the county’s position.​

Legal History:

The foreclosure was filed MOL 7 years ago, our firm was installed as receiver for the asset 09/25/2018.​ Our firm previously sold the note to the current note holder.​ The foreclosure has been working its way through the legal system for several years.​ The case was brought to the Florida supreme court based on “right of standing” and the court ruled in the lenders favor.​ The case was brought to the 2^nd district court of appeals twice.​ Once for usury to determine the default interest rate of 25% and once for “Document Validity” both times the court ruled in favor of the lender.​

The case in the final throws of the court system with final judgement eminent within the next 6 to 9 months pending debtor’s appetite for further legal expenses.​ The current attorney that has worked on the case for the last several years is willing to stay in place and represent the new note owner.​ There is a hearing scheduled for December 4^th, 2024, to determine the final judgement amount.​ Once the court establishes the final judgement amount on December 4^th, the debtor has the right to appeal to the appellate court.​ This should take no longer than 90 to 120 days for the appellate court to review and either affirm or remand the case back to the lower court with instructions.​

Balances:

The current lender estimates the outstanding balance on the note and mortgage to be in the $4,890,000 million range depending on the court’s allowance of prior lender legal fees as costs.​

The opportunity:

Our firm believes the current value of the property in “AS-IS” condition to be in-line with the outstanding balance of the current note and mortgage.​

Renovation to complete the property is estimated to be $1.2 million.​ (Note our firm are owners, investors and property managers of over 1,000 units in the Tampa Bay Market, the costs we quote we believe to be real world costs!

Once the property is completed and leased, we feel the value of the project is MOL $7.5 to $8 million depending upon interest rates and cap rates in the future.​

The current debt owner is willing to sell the note and mortgage for $3,700,000