Case Study – Distressed Asset

The newest phenomenon in the multi-family real estate world is the acquisition of the “Distressed Asset.” The acquisition of the distressed asset is typically when an owner purchases an asset from a buyer that is no longer able to keep up its debt service or when the asset is being purchased as an REO from a bank or financial institution. These assets are usually purchased in poor condition and require the immediate elimination of life safety hazards and typically have a high vacancy factor. Mashcole has taken on the management of a handful of this type of properties. Upon take-over, Mashcole immediately eliminates all life safety issues on behalf of the owner. Additionally, Mashcole implements an aggressive marketing campaign and quickly fills the vacancies, bringing the property back to a stable state. Buyers are paying very low prices for these assets and Mashcole, even in this tough economy, is helping the client maximize value.