Company Description:

• The Chesapeake Bay Conference Center (“CBCC” or “Project”) is a 400-room conference facility with 35,000sf of banquet space, a golf course, a 150-slip marina, 7 food and beverage outlets, tennis courts, a wildlife reserve and 3 swimming pools. CBCC was opened in 2002 under the Hyatt Hotels Corporation flag with Hyatt serving as the Property Manager. CBCC was built from proceeds of a public bond offering through MEDCO.

Challenges Faced:

• CBCC never reached expected revenue levels as forecasted in the original bond offering and was further hampered by the recession beginning in 2008. Currently, the Project is in a monetary default and has tripped various covenants, with the Bondholders consenting to a forbearance agreement.

Solutions Provided by SOLIC Professionals:

• Prepared a Review and Assessment of the Property along with potential strategic alternatives; and, presented findings to the public Bondholders and Trustee of the bonds regarding available performance improvements, cost reductions and organizational improvements.
• Currently monitoring the Project’s financial performance and its compliance with milestones of the extended forbearance agreement.

Result Highlights:

• Negotiated commitment to $8 million guestroom renovation, provided strategic and financial advisory support to the Project, an ongoing monitoring role for the Trustee and Bondholders in anticipation of either an ultimate recapitalization or restructuring, and realization of performance improvements.

Company Description:

• Pirates Cove consists of 145 acres of undeveloped land on the vacation island of Roatan, Honduras. The property is situated on the south side of the Island and includes 1,200 linear feet of frontage on the south side of the island and 3,000 linear feet of frontage along the Caribbean Sea. The size of the site is large enough to accommodate any large-scale, mixed-use resort development. The original plan for Pirates Cove was to develop the site to include a luxury resort hotel consisting of 115 hotel rooms/condos, 300 individual condominium units and 60 single family residential lots.

Challenges Faced:

• In SOLIC’s role as CRO, Fund Manager, and Liquidating Trustee of SageCrest II LLC, a distressed $750 million hedge fund, SOLIC professionals became responsible for Pirates Cove when the Owners defaulted on loan obligations due to SageCrest.

Solutions Provided by SOLIC Professionals:

• After various unsuccessful attempts to resolve the default with the Owners, SOLIC professionals initiated a foreclosure process to take ownership of Pirates Cove.

Result Highlights:

• Shortly after receiving title to the Property, SOLIC worked with various local professionals and vendors to preserve, maintain, properly position, and ultimately solicit prospective buyers of the Property that was successfully sold for a substantial recovery to SageCrest.

Company Description:

• The il Lugano (the “Hotel”) is a 104-room full service hotel property situated on a 1.10 acre site in Fort Lauderdale, Florida. In addition, the property has 23 condominium units on the top four floors.

Challenges Faced:

• SageCrest (its parent hedge fund) provided a mezzanine construction loan to the original developer of the hotel who defaulted; SageCrest subsequently purchased the senior loan and completed construction.
• The Hotel filed for Chapter 11 protection following a dispute with a management company that claimed it was due 40 years of management fees for a cancelled contract.

Solutions Provided by SOLIC Professionals:

• Serve as the Trustee of the Hotel’s parent and as the Owner Representative, as well as the Asset Manager taking an active role in the day-to-day operations of the hotel.
• During the course of the engagement, SOLIC professionals:
  • Took control of the property and immediately replaced key executives including the General Manager;
  • Hired a professional hotel Property Manager to provide a focused turnaround of the property with direct oversight by SOLIC professionals;
  • Restarted the sale of the remaining unsold condos resulting in 10 condo sales for $8.9 million in 24 months; and,
  • Negotiated settlements with claimants resulting in a Consensual Plan of Reorganization.

Result Highlights:

• Drove year-over-year growth in occupancy, ADR and RevPAR, with Hotel Revenue improving by 18%, with Net Operating Income improving by 60%.
• Orchestrated a competitive process, structured and negotiated the successful sale of il Lugano for $21.6 million to Claremont Ft. Lauderdale Suites LLC.

Company Description:

• The Ritz-Carlton Residences on Baltimore’s Inner Harbor is a 190-unit luxury condominium development located on Baltimore’s inner harbor with over $215 million of senior secure debt.

Challenges Faced:

• The project had faced significant construction delays, budget overruns, stagnant sales, market compression, and management challenges. As a result, less than 25% of pre-sale contracts closed and multiple buyers demanded their deposits returned. The project had sold less than 10% of its units and the lender group was threatening to terminate construction draws and foreclose on the project. The project had a large lender group that included eight banks, many of which were foreign. In addition, the principals at the real estate firm that purchased the project also had personal guarantees outstanding against the project.

Solutions Provided by SOLIC Professionals:

• Retained by the RXR Realty, Equity Sponsor, to conduct a review and assessment of the project’s underwriting and underlying assumptions.

Result Highlights:

• Developed a set of operating and sales milestones that allowed the Equity Sponsor to retain ownership.
• Negotiated a three-year extension of the senior loan.
• Negotiated a capital budget that permitted a portion of all sales to be returned to the project.