The Longhorn Company

 

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Richard M. Langhorne,
CRE, FRICS
The Langhorne Company
Restructuring & Real Estate Advisors
14641 Tarpon Drive
Coral Gables, Fl 33158

  • Woodlands Apts.

    Type: Suburban Bonded Large Apartment Property

    Role: General Partner to Implement Reorganization, 1993

    Description: Suburban new and incomplete 3 story apartments/526 units

    Outcome: Successful Reorganization and Sale to First Winthrop

    In April of 1993, Bankruptcy Judge Robert A. Mark approved a change in the Woodlands Apartments Limited Partnership such that Richard Langhorne, through a corporation, under confirmation of plan was appointed Managing and General Partner for an interim period during which certain "workout objectives" were accomplished.

    Woodlands are a 526 unit apartment project in the eastern market of Orlando. The project is financed through a bond administered by the Florida Housing Finance Agency with Sun Bank as Trustee. Citicorp provided credit enhancement through a letter of credit.

    At the time of Langhorne's appointment Woodlands had been in Chapter 11 proceedings more than one year.

    In a short period of time through rather intense focus, Langhorne guided the asset and partnership through the bankruptcy confirmation process and sold the project to. First Winthrop with the following additional accomplishments:

    Created and implemented a program for assessment cost evaluation and remedy of deferred maintenance items.

    Identified necessary and prioritized capital expenditure items and negotiated the methodology for sources of funds for these improvements going forward and initiated the program.

    Identified operational areas for improvement of day to day activities at the property. Initiated programs.

    Increased retention of existing tenants with lease expirations thus reducing expenditures for carpet, painting, vinyl and rental income loss.

    Increased number of market ready apartment units and increased rental percentages of vacant units by directing traffic to a lesser number of vacant units by virtue of higher percentage of lease expiration renewals.

    Increased employee morale by physically participating in on-site business activities at the property a minimum of least one or two days each week.

    Replaced property management company.

    Identified financial irregularities within the property management system and instituted correction system.

    Reconciled and gained control of cash from operations.

    Obtained a commitment for up to $2 million in new equity.

    Increased economic and physical occupancy of property to 99.5% and 97% respectively.

    Cured more than 55 bond requirement deficiencies cited by Florida Housing Finance Agency and made necessary employee changes at the property to reduce recurrence.

    Brought property out of Chapter 11 proceedings with installation of permanent general partner, November 5, 1993, and sale to First Winthrop.

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