Wharton Gladden saves the largest minority-owned property in Greensboro
Statesman Court a $10 million student housing property located on Benbow Road, was granted a reprieve from bank lenders allowing the five year old apartment complex an opportunity to rebound and provide housing for A&T students in the fall.
Wharton Gladden, a local real estate investment firm, was able to analyze the debt accumulated by Statesman Court with developer and owner of the property, Dr. Chelsea Tipton, and restructure the existing $10 million burden.
“We worked extensively with their existing bank partners to negotiate the terms of a forbearance agreement that would allow Statesman Court to make reduced payments until they could stabilize the property. We drafted an operational plan, budgets, and created a discount cash flow model to help their bank partners to understand the depth of the situation fully,” said managing director of Wharton Gladden, Algenon Cash.
Statesman Court primarily serves the neighboring campus of North Carolina A&T University and Bennett College for Women. In recent years the property experienced a severe decline in tenants due to an increase in off-campus housing options and a waning economy.
“While other businesses around us experienced not so pleasant interactions with their Banks, Statesman Court, under the guidance of Wharton Gladden’s Algenon Cash, was able to come to mutual expectable terms with both SunTrust and Bank of Oak Ridge. Wharton Gladden has consulted us on many front including commercial lending, business banking, financial restructuring, general accounting, real estate and tax consulting,”said Cheryl Eley, property manager of Statesman Court.
Commercial property owners are in danger of losing their real estate due to falling valuations, operational challenges, and market disruptions. “In the current economy, it is good for owners, capital partners, and the local community when we save properties,” said Cash. “These property owners must approach their capital partners proactively and provide them a plan that will lead to stabilization.”
According to Cash “Wharton Gladden has a unique talent that enables us to advise property owners that are in this situation. We have a deep knowledge of how to structure capital and evaluate risk. In addition, our knowledge of loan underwriting and risk management provides much value to our clients that may need to negotiate a workout with their capital partners.”
“The Tipton and Eley family are not only fortunate to have engaged with this organization but also thankful for the professional and expert advise that Wharton Gladden has brought to our company which has ultimately allowed us to continue to prosper,” said Eley.
About Wharton Gladden & Company:
Wharton Gladden & Company is a uniquely designed boutique investment banking firm that specializes in providing strategic advisory services, underwriting, capital placement and private equity for a diversified client base that includes corporations, real estate developers, financial institutions, investors, municipalities and high net worth individuals.