Non-Performing Loan Secured By Applewood Grove, a ~67,000 Square Foot Multi-Tenant Shopping Center, Sold To Local Investment Group Before Being Paid Off In Full By Owner

August Investors, LLC completed, through its subsidiary, the purchase of a loan originated and owned by Washington, DC based National Cooperative Bank (NCB). The loan was secured by Applewood Grove: a ~67,000 square foot multi-tenant shopping center located at 1901-1961 Youngfield St. in Golden Colorado. August Investors’ subsidiary purchased the loan on February 23, 2016 and was paid off in full by the Borrower on April 22, 2016. The foreclosure action, which was commenced by FSB Bank is set to be withdrawn by the Jefferson County Public Trustee on Friday April 29, 2016.

“August Investors’ focus is on buying non-performing loans and real estate that are distressed in some manner. We typically get the deals that have ongoing issues and require aggressive hands on management.” said Zachary Segal the CEO of August Investors. “When we purchase loans, our primary goal is always to work with the borrower to see if they can retain ownership of the collateral by making the lender whole. That does not always happen, but in this case it did! It is a testament to strength of the metro Denver real estate market.”

Fortuna Capital, LLC who has owned the center since 2007 failed to make a required payment when its loan, with an outstanding principal balance of $2,571,979.53, matured on August 1, 2015. NCB initiated a foreclosure action and then ultimately sold their interest to an entity owned by August Investors, LLC. The terms of the loan purchase are confidential, but it all happened at lighting speed; the deal closed a mere 5 days after the loan sale agreement was signed by both parties. “Our ability to complete a transaction with cash, and with certainty, is a big reason why sellers pick August Investors as a buyer” said Mr. Segal.

Built in 1960, the Applewood Grove Shopping Center has been a long term fixture of the neighborhood. Like many other properties in the metro area, it endured its share of challenges during the recession, but has experienced a strong comeback. The opening of Teller’s Taproom & Kitchen across the street along with the ownership’s ability to attract new tenants to the center has contributed to the area’s rejuvenation. The result is a satisfactory ending for all parties involved.