Bill and Emad, I wanted to take
a minute and congratulate you
on getting this restructuring closed.
This is exactly what this property
needed to be able to move forward
and achieve the vision
the developer and the county had
for the property at the outset.
It was a difficult restructure,
as restructurings often are,
and your perseverance and effort
was the only way
this was going to happen.

—Keenan Rice, President
Municap Inc.
Community Development Authority Administrator
Lewistown Commerce Center CDA

The Competitive Advantage

Real estate developments with defaulted bonds are particularly difficult to untangle due to the numerous interested parties with disparate goals and motivations. Public agencies, bondholders, landowners, homeowners associations, developers, bank lenders, elected officials and appointed public officers all have something at stake.

Bond defaults, failed real estate developments and conflicting diverse interests scare investors away—with good reason. Common Bond is one of very few companies with the experience and knowledge to solve these problems and it has successfully done so for many years.

The Bottom Line: Common Bond’s unique skill set has given us access to undervalued projects at an attractive low basis. Our history of problem solving, our understanding of the arcane details of municipal finance, our real estate development expertise, and our history of bringing disparate interests to a common goal, affords Common Bond the unique ability to create new development economics in order to unlock the latent value in otherwise troubled real estate.

Potential Scale of Opportunity

With a recovering economy in the past few years, a number of distressed real estate projects have already turned around. However, due to the intractability of bond defaults and the disparate multiple interests involved, there remain numerous stalled projects (and opportunities) in this unique sector. We currently estimate that in a universe of more than $5 billion of outstanding bonds in default or at significant risk of default, approximately $1 billion relate to real estate projects that are potential targets for Common Bond’s solutions.

Our current projects provide good examples of the characteristics of future projects that would be of interest to Common Bond and provide significant opportunities for investors.

California municipal restructuring bond solutions

Where Investors May Participate

Investment opportunities with Common Bond include the potential of participation in both the upside in bond restructurings and, more significantly, in the acquisition and development of newly de-leveraged commercial and residential real estate projects. Such investments may include capital infusion at attractive returns, development partnerships or outright purchase of existing assets.