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Becoming a Rescue-Owner/Operator investor

If you've been following our content here on the INVESTigate More blog, you may recall that long time investor partner and friend, Bob Butman, named Orchard Hills Landings in The Town of Newburgh, NY as his favorite property in our portfolio. This isn't just due to the natural wonders of the surrounding Hudson Valley, but the long and rewarding process of identifying a high-potential asset and becoming a true Rescue-Owner/Operator investor.

Read on to learn how LREG utilized its development, operational and strategic skills to make this property one of the strongest (and most loved) in our portfolio!

Orchard Hills Landings, located in The Town of Newburgh, New York is a 51-acre, 260-unit community comprised of 128 apartments and 132 townhomes. During construction, the original developer experienced overruns of $20M and was unable to complete the project. They sold their interest to the General Contractor, who then brought us on board as the Property Manager.

Because we could not ignore this property's incredible potential, we forged a working relationship with the General Contractor, HUD lender, the HUD office in New York City and the surety bonding company to complete the project and negotiated an acquisition of the project. We negotiated new HUD 224(d)(4) mortgage and funding from the surety to complete the project along with our equity capital to satisfy the accrued interest and expenses owed to the Lender.

After purchasing the property and facilitating the transfer of assets via HUD, we acted as General Contractor to complete the $15M of remaining construction work in 12 months while collaborating with the surety and HUD on funding the completion. We then leased the property to 95% occupancy and we continue to own and operate the property while generating a 15.75% annual Cash on Cash return to our investors.

We're proud to be the owners and operators of this Hudson Valley gem that provides a wonderful living experience for our residents, great career opportunities for our team and above average returns to our valued investor partners.

As always, we're eager to hear what you think and we invite you to connect with us on LinkedIn!

543 Thames Street, Newport, Rhode Island 02840|401-845-2200 |