Corigin’s breath of expertise and operational capabilities uniquely position us to capitalize on compelling idiosyncratic investment opportunities. Situations often include complex capital and partnership dynamics, nuanced zoning considerations, legal particularities, and/or in-place construction or operational challenges.
1352 1st Avenue
1352 1st Avenue is a four-story mixed-use property located on First Avenue on Manhattan’s Upper East Side.
Corigin acquired the property at a valuation reflected only in the existing cash-flows, not the property’s theoretical development potential. The property’s zoning allowed for significant additional development rights, or “air rights”, which are normally a highly valuable asset. While practical site considerations precluded development for the property as a stand-alone consideration, Corigin’s intimate understanding of construction feasibility and local zoning codes, allowed it to identify a path to unlocking this value.
We first evaluated the zoning of the neighboring lots in detail, then designed several renderings of the developments that could be achieved by enjoining those lots, and finally projected financial returns which established a much higher value for all parties in a combined development effort. We presented these plans to the neighbors in an effort to join forces in a joint-venture structure. Ultimately a three-party group consensus could not be obtained, however, one of the neighbors was enticed enough to purchase the property for full development value, a dramatic increase over our basis.
Corigin Capital acquired a non-performing note on an off-market basis secured by an approximately 16,000 square foot multifamily residential building with ground-level retail located in a prime section of the Lower East Side neighborhood of Manhattan. Foreclosure proceedings were commenced, and following the appointment of a receiver on, 12 vacant units were leased and property upgrades were performed to stabilize the asset.
After the Borrower filed for Bankruptcy Protection, Corigin Capital was able to negotiate to acquire the second secured position at a dramatic reduction to face value, and work to resolve a sale of the asset. Corigin Capital was repaid its full face value through a Bankruptcy sale of the property, generating very strong investment returns.
The Property is a luxury single family townhouse on Manhattan’s Upper West Side. Built as a luxury for-sale product, Corigin completed a debt for equity swap with the prior owner of property with a structured subordinate position that put Corigin at an attractive basis in the asset. Upon completion of the restructuring, Corigin tenanted the property and secured a cost-efficient bank mortgage, with the business plan to sell into a stronger luxury market.