Private Placement Project

A New York real estate development firm that specializes in distressed properties was referred to us by a broker-dealer. The broker-dealer had clients who were interested in investing in this asset class, but the firm lacked the expertise necessary to pull the deal together. The developer had a letter of intent to purchase an old manufacturing site adjacent to the downtown area of an otherwise lovely New England town. The site had not been used in five years and had become an eyesore. Unfortunately, it also had some contamination, severely limiting the number of developers that would have an interest. The New York firm developed a plan to remediate the property, tear down the manufacturing buildings (with the exception of the one historically significant building on the site) and build apartments, condominiums, and a retail area.

We assisted the broker-dealer and the developer in 1) structuring the deal, 2) creating a private placement for the project, and 3) writing the private placement memorandum. 1st BridgeHouse also served as the placement agent. The broker-dealer raised the maximum of $3,000,000, and the project has begun. When it is finished, the investors should thrive, the developer should flourish, and the town should prosper.