Warm Springs Crossing

Purchase of a note at auction leads to interest in well located class A properties.

Warm Springs Crossing is a four-building class A project totaling 309,588 SF, located in the Southwest submarket of Las Vegas. The project is well located and has great functionality with suites ranging from 6,000 SF to 70,000 SF. The facilities feature 20- to 24-foot clear height, 51% office finish, and HVAC. It contains 81 dock-high and 28 grade-level loading positions. We believed that a lack of responsive, hands-on management was responsible poor occupancy at an otherwise attractive site.

The original borrower had been in default for 18 months prior to acquisition, and we had approached the real estate fund directly to acquire the note. Our offer was initially rejected when the fund decided to auction the note, along with several others, through Auction.com. So, we acquired the note through the auctions process. Subsequently, we moved forward with the foreclosure sale on June 24, 2010 resulting in our ownership of the properties as a result of the process.