There was a near six-figure encumbrance by the City of San Diego from multiple code violations. Penalties were accruing at an estimated rate of $600.00 per day. Initial discovery reveled that the city was inflexible and demanded payment of penalties. Poor asset condition increased community concern and complaints reported to city officials.
FBP met with city of San Diego inspectors and planning department to clarify issues and desired outcome. FBP proposed several solutions with desirable city benefits, which eliminated code violations penalties and any liability to seller. FBP completed purchase in 30 days.
FBP eliminated seller’s liability with city totaling nearly six-figures. The renovation plans were approved by city within three week. Tenants were peacefully transitioned during construction. Certificate of occupancy was issued by city within 90 days. Asset was fully leased within 6 months of acquisition. The finished product rejuvenated the community and attracted additional investment into the area.