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Back Bay Tower, Portland, ME

The borrower on this Class A multifamily high-rise building was in default on the mortgage, but the bonds were current. All bond obligations were covered by a $10 million letter of credit, for the benefit of the bond holders.

The Reliant Group acquired the letter of credit obligation, backed by tax exempt bonds, notified the borrower of the default, and began a foreclosure process. The borrower was removed shortly thereafter. The Reliant Group paid off the bonds at par so no bondholders incurred a loss, and took title to the real property after completing its foreclosure action.

The property had numerous maintenance issues, structural problems and vacant commercial space. The property was repositioned in the market place after an extensive renovation, including the addition of the first "green roof" garden in the state, and now is fully occupied, with the highest rents in the market.

“After struggling for years with a sub-performing asset and an uncooperative operating partner we were able to sell our guaranty obligation to The Reliant Group. We were able to extricate ourselves from a difficult situation at the highest possible price.”

— Keiji Inagaki, President
Mitsui Kenetsu Development