DREN ceases affliliation with Harbinger Investments LLC

As of August 31, 2012, DREN LLC  and Stan Wood (also known as Harbinger Investments LLC) have decided to discontinue their affiliation.

DREN will continue to focus on distressed real estate notes, REO, and commercial development deals.

DREN wishes Harbinger Investments and Stan Wood well on any of their future pursuits.

Posted in Commercial Real Estate, Distressed Real Estate Notes, DREN | Leave a comment

Louviers RV Storage facility – Louviers, CO

The DREN team is proud of our ability to close complicated transactions quickly and efficently in the distressed commercial real estate note market.  In May 2012, DREN closed it most recent investment acqusition 14 DAYS EARLIER than ORIGINALLY SCHEDULED per the Lender’s Executed Letter of Intent!

This acquisition of an operating RV and Boat Storage facility located at 5989 Main Street Louvers, CO is conveniently located in the south Denver Metro area-just off Sante Fe Drive/US-85 – within easy access of interestate highways I-25 and C-470.  Easy access to Chatfield Resevoir.

DREN would like to thank our joint venture investment partners, Western Skies Associates LLC and our legal representative, Doug Brown, for making this transaction such a success!

 

 

Posted in Colorado Distressed Real Estate, Colorado Real Estate, Commercial Real Estate, Distressed Commercial Real Estate Note Market, DREN, investment, Investment Partners, Louviers, RV Storage Facility | Tagged , , , , , , , , , , , | Leave a comment

2012 Economic Indicators Very Promising for DREN

The general consensus of economists at the 2011 NABE Outlook predicts the US economy should experience moderate growth through the end of 2012. However, in the commercial real estate note environment, a $100 billion wave of commercial real estate notes are scheduled to mature in 2012. $70 billion in first time CMBS maturities plus $30 billion CMBS delinquent loans. Larry Kay, a Standard & Poor’s credit analyst estimates that 50% to 60% of these loans may fail to refinance. This combination creates the perfect conditions for DREN’s investment model of buying distressed commercial real estate notes: large supply of notes available at favorable pricing in an economy that allows multiple investment and exit strategies.

The commercial real estate markets are inefficient. Yet it is the opportunities created by these inefficiencies that allow some market participants to continue to profit and set new market – price levels for commercial real estate. While many firms and investors have been making a lot of “noise” about competing in the distressed arena, few have been able to actually execute such a business model.  At DREN LLC, we believe we have a competitive advantage in the distressed commercial real estate market. The members of DREN’s management team, each with a minimum of 25-years real estate investing experience, have been executing such a model for distressed real estate since 2003.

Posted in Colorado Distressed Real Estate, Colorado Real Estate, distressed real estate, Distressed Real Estate Notes, DREN, investment | Tagged , , , , , , , | Leave a comment

DREN’s Deal Selected for 2011 Recipient of Colorado-Wyoming CCIM Deal of the Year Award.

The award-winning transaction involved a multi-unit industrial property located in Englewood. Property functionality, site feasibility, financial analysis and ability to execute on complex foreclosure/redemption strategies within a compressed timeframe were crucial elements in DREN’s analysis of this investment.

Upon closing, the total transaction cash-on-cash return was 97%, with a transaction annualized return on equity of 581%. Each equity investor realized a 48% cash-on-cash return, or the equivalent annualized return of 288%.

This transaction was a classic win-win deal for all involved. Obviously the deal was profitable for DREN and its equity investors, but it also benefited the junior lender, the foreclosing beneficiary, and most importantly the previous owner and his employees.  If DREN had been unable to successfully execute its redemption strategy, it is very likely that the previous owner would have gone out of business, with unemployment resulting for his employees. Business operations for the other tenants would also have been interrupted with their leases extinguished by the foreclosure.

 

 

Posted in Award, CCIM, Colorado Distressed Real Estate, Colorado Real Estate, Deal of the Year, distressed real estate, Distressed Real Estate Notes, DREN, investment | Tagged , , , , , , , , , | Leave a comment

DREN LLC at IMN Chicago!

DREN LLC attended the IMN ‘s Bank & Financial Institutions Special Assets Executive Forum on Real Estate Workouts. This select topic executive forum was held in Chicago on September 12-13, 2011.

Dren LLC is a Colorado-based buyer of distressed commercial real estate notes and REO.  We are excited about participating in the Chicago forum.  Topics discussed included the current outlook for lenders’ special assets divisions.  Here’s a small sample of the topics that were discussed:

  • Are lenders becoming more willing to work out their real estate?
  • Portfolio sales versus one-off sales
  • Are lenders taking write-downs?
  • Why aren’t lenders marketing this property

 

Posted in Colorado Distressed Real Estate, Colorado Real Estate, commercial Real Estates, Denver Commercial Real Estate, Distressed Mortgage Portfolios, distressed real estate, Distressed Real Estate Notes, DREN | Tagged , , , , | Leave a comment

Colorado Cities Honored by MONEY

DREN LLC has been telling everyone how wonderful Colorado is, not only because of the opportunities available in Colorado commercial real estate, but also because it is just a terrific place to BE!  We’re not the only ones who think this. 

Once again, Colorado has multiple cities honored in the MONEY’s “America’s Best Places to Live 2011”.  (Click on any city listed below to see what MONEY had to say.)

Rank City Population
1 Louisville, CO 18,400
19 Castle Rock, CO 37,200
20 Superior, CO 12,900
29 Parker, CO 41,000
66 Black Forest, CO 21,800

It is no coincidence that these cities are all strategically located along the Denver, Boulder and Colorado Springs corridor.  Proximity to jobs, businesses and entertain from the key metro areas of Colorado.

Per the article, “A team of seven MONEY reporters spent months combing through reams of data provided by OnBoard Informatics and other sources and fanning out across the country to identify small towns (those with populations of less than 50,000) that stand out in the qualities American families care about most.

The goal: Find the best combination of job opportunities, fiscal strength, top-notch schools, safe streets, good healthcare, cultural and outdoor activities, even nice weather. The result: MONEY’s 100 Best Places to Live. (Demographic information provided by Onboard Informatics.)”

http://finance.yahoo.com/real-estate/article/113316/best-places-to-live-in-america-2011

DREN LLC invests in commercial real estate notes and properties located throughout Colorado and its adjacent states.  If you would like further information please contact us at info@drenllc.com or 303/681-2219 or toll free at 877/719-3869.

Posted in Colorado Real Estate, Commercial Real Estate Available for Sale or Lease, Denver Commercial Real Estate, DREN, investment, Uncategorized | Tagged , , , , , | Leave a comment

Seeking Refuge from Market Volatility?

The volatility continued on the stock market roller coaster.  The Dow Industrial Average has fallen 11 of the last 14 sessions.  For many, weighing the options of returns versus volatility has investors in a quandary.  What to do with excess cash?  Real Estate?  Concerns over housing prices and demand remain.  Also of concern is the considerable backlog of residential mortgage defaults and bank owned properties that have yet to hit the residential real estate market.

However, there is positive news in the Colorado commercial real estate market.  The Colorado commercial real estate market has been quietly performing positively, even as other commercial markets across the nation lag.  Quality of life, a welcoming business environment, spectacular scenery, world-class health care, abundant recreational activities, ease of transportation…All combine to provide the excellent quality of life that is critical to the attraction of skilled and talented workers that are essential to the success of a growing business.

For several years, Colorado has repeatedly ranked in the Top 10 of Forbes “Best Places for Business and Careers”. Most recently, in June 2011, Forbes stated “Another big metro that made the top 10 …is Denver, which ranks No. 9. U.S. economic growth has been tepid since the recession ended, but Denver’s economy grew 3.9% last year and is expected to grow 3.9% annually through 2013 according to Economy.com. Denver’s great quality of life and educated workforce make it a favorite with companies in industries from aerospace and bioscience to energy, financial services and information technology…”

But it is not just Forbes that recognizes the opportunities of Colorado.  The  Emerging Trends in Real Estate 2011 report by ULI and PricewaterhouseCoopers places Denver as one of the top 10 national cities to watch for the fourth year in a row highlighting Denver among top-tier cities in the nation. Furthermore, numerous other Colorado communities have ranked at the top of lists as the best place for everything from Fitness, to Best Place to Retire, Best Place to Raise a Family, Best Places for Recreation, Percentage of Sunny Days, Percent of Adult Population with a Bachelor’s Degree or Higher, and Best Small Business Tax Climate, to name just a few.

DREN LLC is positioned to acquire Colorado real estate at below market rates.  Today, we found yet another fantastic opportunity in the Denver, CO commercial real estate market.   In the past month, we have seen several deals worth investigating.  We have several others on our radar screen.

If you would like to learn more about what is happening in DREN‘s world, give us a call at 303/681-2219 or via email at info@drenllc.com.

Posted in Colorado Real Estate, Commercial Real Estate Available for Sale or Lease, Denver Commercial Real Estate, DREN, investment | Tagged , , , , , , , , , , , | Leave a comment

2nd Annual Buying & Selling Distressed Mortgage Porfolios Forum

DREN LLC attended the 2nd Annual Buying & Selling Distressed Mortgage Portfolios Forum which was held in New York City June 16-17, 2011.

Between 2008 and the 1st Quarter of 2011, there have been 348 bank failures with $636.1 billion in total assets.  When banks fail, the FDIC steps in acting as receiver to dispose of the failed banks’ assets.  During the current economic crisis,  FDIC’s typical disposition strategies include:  cash sales of  pools of loans offered to qualified bidders only; structured sales of pools of loans placed in equity partnership with the FDIC under a limited liability corporation (LLC) configuration which included a possible financing option; and securitization – commercial real estate loans and single family real estate loans. 

 Approximately 99% of real estate loans held by failed banks have been disposed of using  structured sales.  However, appears to be a trend towards securitization.

Per the panels speaking at this forum, banks are getting increased pressure from the FDIC / banking regulators to dispose of their REO and the spread between the bid and ask for these assets is starting to narrow.  So we would expect to see more of these assets brought to market and sold in the next 12 months.

Posted in commercial Real Estates, Distressed Mortgage Portfolios, distressed real estate, Distressed Real Estate Notes, DREN, Failed Bank, FDIC, investment | Tagged , , , , , , , , , , , , , , | Leave a comment

DREN Optomistic After 8th Annual Winter Forum

DREN LLC participated in IMN’s 8th Annual Winter Forum on Real Estate Opportunity & Private Fund Investing held in Laguna Beach, CA January 12-14, 2011.  The largest of its kind on the West Coast, over 500 senior executives representing national and global commercial real estate funds, REITs  and investment affiliations convened to discuss what the next 12 months have in store for commercial real estate investment. 

A recurring theme throughout the 3-day forum was that strategically positioned funds and companies can continue to expect opportunities with cash acqusitions:

  • CMBS markets are projected to remain constrained due to the level of defaults and non-placeable maturities predicted for 2011 and 2012.
  • Although cap rates have compressed for Class-A properties in key coastal markets, aquisition opportunities exist in Class B or C properties, particularly in non-coastal markets such as Denver, CO.
  • Key driver for market rebound in both residential and commercial real estate is population and job growth. 
  • Cash is critical for acquistions today. Sellers are not apt to accept an offer contingent upon buyers obtaining financing in today’s lending environment.  Therefore, if you are not willing to come in with cash (and perhaps obtain financing after acquistion), you are sitting on the sidelines.

As a geographical niche fund that focuses on acquiring positions in B and C commercial real estate with cash in the Denver, CO area and adjoining states, DREN is excited about 2011. 

According to the 2010 US Census, Colorado experienced a 16.8% growth from 2000-2009, making it one of the highest percentage growth states in the nation. Colorado consistently places in the top 10 of places to live and work.  

DREN works with a network of lenders to resolve their problem assets.  Using DREN’s well-analyzed, creative acquisition strategies, we are able buy real estate positions with instrinsic value in place so even if prices don’t increase above todays levels, DREN still is positioned to make a great return.

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DREN is at 8th Annual Winter Forum on Real Estate Opportunity & Private Fund Investing

The DREN team has arrived in sunny Laguna Beach, CA to attend the 8th Annual Winter Forum on Real Estate Opportunity and Private Fund Investing Conference.  The conference, which runs from January 12-14, is the largest event of its kind on the West Coast.  This Winter Forum brings together a “who’s who” of notable Real Estate Private Equity Fund Managers, Institutional Investors, Lenders, Banks, Special Servicers and Service Providers active in Commercial Real Estate investing.

We are thrilled to be a part of this exclusive event!

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