Gardere Closes Recapitalization of Philadelphia Ritz-Carlton Residences for The Gencom Group
Congratulations to The Gencom Group and Gardere's Hospitality Industry Team for completing the recapitalization of The Ritz-Carlton Residences project in Philadelphia. This branded high-rise condominium project in center city Philadelphia was completed earlier this year, but most of the condominium units remain unsold.
The Gardere team was comprised of hospitality industry team attorneys with real estate, tax, corporate, and bankruptcy and reorganization experience who worked for almost a year on this project. The closing involved the simultaneous (1) equity infusion by our client The Gencom Group and its new Argentine capital partner, (2) restructure and extension of approximately $250,000,000 of senior debt with a group of foreign banks and pension funds, (3) purchase at a significant discount of approximately $70,000,000 of mezzanine debt from a Caribbean insurance company currently in liquidation, (4) restructure of the equity interest in the deal owned by the Lehman Brothers bankruptcy estate, and (5) purchase of certain minority interests in the project.