A FOUNDATION IN PROPERTY MANAGEMENT 
PROFITING FROM NON-PERFORMING INVESTMENTS 
STRENGTHS DIRECTED TO ASSET MANAGEMENT 
YOUNG MILLENNIUM, FRESH FRONTIERS

Profiting from non-performing investments. In the wake of the saving & loan crisis of the late 1980s, Rabina Properties found a new market opportunity – defaulted debt and foreclosed real estate – in transactions involving the FDIC, the Resolution Trust Corporation, and numerous banks eager to clean up their balance sheets. Rabina acquired more than $1 billion of loans at 30 to 50% of face value, secure in its ability to ultimately foreclose and manage the subject properties if need be, something traditional lenders are always reluctant to undertake.

During this period, the firm built several new capabilities. Bankruptcy expertise became a core competency of the firm, as it gained sophistication in multi-party negotiations, loan restructurings and foreclosures. The firm extended its reach to a national level with these transactions, as the underlying property and the developers were located across the United States. These experiences also took Rabina far beyond its roots in the New York City residential sector, with situations involving retail, industrial, distribution and commercial properties; property-backed financial instruments; the acquisition and management of complex real estate portfolios; and new relationships with some of the nation’s foremost real estate developers and investors. 

Finally, with the acquisition of $25 million in distressed Mello-Roos bonds from the Franklin Fund, the firm tested the full range of these strengths. In this transaction, Rabina took the lead from bondholder Allstate, and over the course of three years, negotiated a successful restructuring with the developer and the California municipality that issued the bonds.  Next