In the News

Hanover County, VA Completes
Bond Workout and Debt Restructuring
Negotiated by Common Bond Capital Partners

FOR IMMEDIATE RELEASE

(Hanover County, Virginia – August 28, 2014) The Lewistown Commerce Center Community Development Authority in Hanover County, Virginia has successfully completed the restructuring of $37.7 million in defaulted bonds. The workout transaction, which was completed Tuesday, will reduce assessment bond debt on 123 acres of land just south of the town of Ashland at the intersection of I-95 and Lewistown Road. The project, known locally as Winding Brook, is anchored by Bass Pro Shops and Country Inn & Suites.

The debt restructuring was proposed and managed by Common Bond Capital Partners, a specialist in recapitalizing and restarting real estate projects that stalled during the recession due to excessive bond debt. To complete the complex deal, Common Bond worked closely with bondholders, other landowners and Hanover County.

Edwin Gaskin, the County’s Economic Development Director reported to his Board of Supervisors that “the bond debt burden caused the land to be financially underwater.” The bond restructuring was approved by the Hanover County Board on May 28.

Bill Huck, Managing Director of Common Bond, said the last three months have been consumed with ensuring that all the legal documents and funding requirements were completed in a way that met the Board’s policy direction and the economic goals of investors in the bonds and land. “Winding Brook is a terrific location, but new development had been discouraged by uncertainty and high costs. All the stakeholders came together on this in order to reduce both risk and cost. The average assessment has now been cut from approximately $300,000/acre to approximately $100,000/acre.“

Huck said that Common Bond has invested in the Winding Brook project itself by buying 43.5 acres of land and some of the bonds that have now been cleansed of their default status through the successful workout.

Winding Brook’s master developer is Holladay Properties of South Bend, Indiana, which owns 55 acres in the project. According to Holladay’s Senior Vice President and project manager, Austin Haynes, the successful bond workout is just one of three catalysts for near-term development in Winding Brook. “The Virginia Department of Transportation begins a $30 million improvement to the Lewistown Road interchange next year, and Craig Retail Group is expected to break ground on a 375,000 square foot outlet center across the street. We’re already in discussions with a new restaurant, a doctor’s office, a second hotel and a recreation user.”

Common Bond Capital Partners LLC was formed in 2012 to provide capital, financial know-how and real estate development expertise to help resolve defaults in the complex land-secured municipal bond sector. During a 30-year career in municipal finance, Common Bond Managing Director and CEO Bill Huck successfully pioneered the California bond industry’s efforts to develop innovative workout strategies and statutory tools to resolve major bond defaults in the 1990’s recession. Those efforts restored tax-delinquent properties to the productive tax rolls.