Distressed Property Resolution Transitions
Wesley E. Finch, as operating director of his former employer, was retained by Massachusetts Housing Finance Agency to takeover, workout and reposition 929 House, 929 Massachusetts Avenue, Cambridge, Massachusetts and 808 Memorial Drive, Cambridge, Massachusetts. These two projects, totaling 500± units, were repositioned and today, over thirty years later, provide quality, affordable and market rate housing in the area between Massachusetts Institute of Technology and Harvard University.
The Finch Group was retained to restructure the financing, both debt and equity, of Prince Hall Plaza Apartments in Harlem, NY. Early on, during the due diligence period, TFG determined, that prior to any possible financial restructuring the property required an immediate and extensive triage effort. It was clear that Ownership, as represented by the Board of Prince Hall and prior management, neglected to carry out the obligation to properly oversee the property and were entirely deficient with HUD mandated compliance regulations. TFG began by implementing a series of internal controls, a $547,000 Weatherization Program through the Northern Manhattan Improvement Corporation, dismissed current management, terminated Prince Hall’s relationship with unionized employees, settled most of the outstanding law suits/judgments and brought in, as of May 1, 2011 Multifamily Housing Management as the property manager. Once TFG, along with the new Board of Directors and management, placed the operations of Prince Hall back on an “even keel,” the JV submitted a refinancing application for the recapitalization and rehabilitation of Prince Hall to New York City Housing Development Corporation to underwrite new financing. On September 3rd, 2015 Prince Hall closed on its conversion to permanent financing. Today the property is fully occupied, operating at positive cash flow and providing quality affordable housing for senior citizens of limited financial means.