Background:

Owners of subordinated debt and equity related to raw land in Winslow, WA were faced with a loss of their economic interest in the land by virtue of a pending foreclosure sale. Lacking resources, the Owners approached SP requesting assistance in avoiding loss of the land and proposing a joint venture regarding land development. With the foreclosure looming, the parties needed to act promptly.

Highlights:

• SP was able to quickly assess the Owner’s needs and propose a relationship whereby it would gain control of the land at the foreclosure sale. SP provided the Owners a right to reacquire the land at a formula price should a joint venture not be consummated in a reasonable period of time after the foreclosure.
• SP acquired the land and subsequently worked in good faith with the Owners to establish the parameters of a joint venture.
• After it became apparent the parties did not share the same vision regarding site development, and the Owners had been able to marshal other resources, the Owners exercised their option to acquire the land from SP.