JDI spends a great deal of time sourcing unconventional opportunities. A short time frame, a property idiosyncrasy, a legal or financial problem for an otherwise sound developer are insurmountable obstacles to many lenders or potential joint venture partners. Because of our experience as acquirers of property, we can evaluate the deals based on the potential of the property. We exercise independent judgment, look for value, and are fully committed to a successful project. The stories below illustrate the way in which JDI combines investment and financing expertise to get deals done for our clients.

Reorganization Under Pressure
Client: A hotel owner/operator
Transaction: Foreclosure and reorganization of a 150-room hotel in Ontario, California
Challenge: Our client filed for Chapter 11 bankruptcy protection after its lender had initiated foreclosure proceedings. JDI was able to structure a transaction that satisfied the lender and other creditors, allowing the client to successfully emerge from bankruptcy.
Opportunity: The foreclosing lender offered the owner a discounted payoff, provided the transaction closed within 30 days and prior to the end of a fiscal quarter.
Action: JDI provided a $3,620,000 first mortgage before the 30-day deadline was reached, enabling our client to maintain full ownership and control of the hotel.

A Large Property
Client: A California-based specialist in recycling large, vacant properties.
Transaction: The acquisition of a five-building, 1.5 million square foot industrial complex in upstate New York that had sat vacant for several years.
Challenge: Finding a lender able to underwrite such a large redevelopment effort.
Opportunity: Our client had rehabilitated many other such properties, and had a plan in place to realize the investment potential of this transaction.
Action: JDI provided an initial acquisition loan for $4,850,000 and made available an additional $950,000 for capital expenses, leasing commissions and tenant improvements for a total loan amount of $5,800,000.

A Two-week Window
Client: A New York-based investor
Transaction: Acquisition of a two building, 93,000 square foot, class A office complex in Dublin, Ohio.
Challenge: With less than two weeks until closing, an institutional lender informed our client that its investment committee had turned down the loan.
Opportunity: JDI was able to move quickly-within two days we quoted loan terms, visited the property, met with the investor and conducted other standard due diligence investigations.
Action: Two weeks from the initial contact, JDI funded a $7,000,000 first mortgage loan, allowing our client to acquire this class A project.

An "Impossible" Transaction
Client: A California-based real estate investment company
Transaction: Acquisition of a 25-building, 400-unit garden style apartment complex in Mission Viejo, California.
Challenge: The property's first trust deed was in default and in order to acquire the property, the investor needed to purchase the defaulted trust deed and then either foreclose or work out a deed-in-lieu of foreclosure. As a result, the investor could not give an acquisition lender a first trust deed at closing but only a pledge of the defaulted note-an "impossible" situation made even more difficult by the three-week closing window.
Opportunity: If successful in taking over ownership, the investor would then convert the security to a simple first trust deed.
Action: At closing, the investor purchased the defaulted note and an affiliate of JDI Loans provided a $10,000,000 acquisition loan secured by a pledge of the note. Approximately 45 days later, the investor reached a settlement with the original owner and took over fee simple title to the project and JDI received a first trust deed on the property. Shortly thereafter, the investor sold the property at a substantial profit.

Traditional Lenders Fall Short
Client: An Orlando developer
Transaction: Purchase of an 88,000 square foot vacant office building in downtown Orlando.
Challenge: In order to beat out several competing bids, the developer had to make a commitment to close in three weeks. None of his traditional or institutional lenders could close in this time frame.
Opportunity: During an accelerated due diligence, JDI determined that our client's price was fair and that the property was sound.
Action: We provided a $4,200,000 first mortgage loan to acquire the building and fund tenant improvement and leasing costs. The developer was able to execute his releasing plan much quicker than projected, eventually selling the building for a significant profit.

Successful Refinancing
Client: A New York investor and property owner
Transaction: Our client needed to raise $1 million in cash quickly.
Challenge: Our client's most valuable asset was a New York property that generated substantial cash flow but was encumbered with a fairly small yet limiting first mortgage.
Opportunity: The investor could not refinance the existing mortgage without triggering a substantial penalty. However, he had equity in the property equal to several times the amount of capital that he sought.
Action: JDI arranged an extremely secure second mortgage for the client within a very short timing window.