The company acquired Venture on Colter at a significant discount, recognizing it as a classic distressed opportunity. The seller originally purchased the property at a high valuation, leveraging low-interest debt. However, with rising interest rates in 2024, they are now unable to service the debt, creating a unique opportunity for us to acquire the building at its debt value directly from the bank.

By purchasing below the asset’s intrinsic value, we immediately gain built-in equity. The property is currently 75% occupied. We plan to enhance operations and property management, increasing occupancy to over 90%. Once occupancy exceeds 90% for a sustained period of 90+ days, we will position the property for refinancing through a conventional bank loan.

After a few years of stable cash flow and continued property management improvements, we anticipate selling the asset at an estimated strike price of $18.4 million, realizing significant value appreciation.