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Look Before You LeapThe Bank was $250M in second position on raw land in a growing area. The first was $400M. Although the tract was four acres, the appraisal indicated only .5 acres was buildable to due to wetlands. Property was selling for $600M/acre. This looked like a big loss. We did a physical inspection of the property and noticed the high water mark for the wetlands was well down the slope on the property. An inquiry with the county planning department and a few conversations with an engineer familiar with the site revealed there could be as much as 1.8 acres buildable. The Bank foreclosed and the property was sold at almost $200M profit. In each case study, we were able to assist our client Bank from experiencing significant losses. In each case, the Bank's management would have gone in a different direction had Crossroad Credit and Portfolio Management LLC not been involved. |
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