The loan allowed Bobby Ginn and LA investors to remove guarantees and ‘harvest’ profits from five projects, leaving each liable for the entire loan amount.
"The immediate mitigation of 100% of the capital risk, through the repayment of all invested equity and bridge funding(s);"
"The removal of all guarantee exposure to Bobby Ginn, Lubert-Adler Fund III and Lubert-Adler Fund IV, because the facility is non-recourse, thereby allowing the JV (joint venture) to pursue the harvesting of profits with no risk of capital loss;"
"Accelerate profit distributions……"
CS closed similar loans with a handful of other developers; Lake Las Vegas, Yellowstone Club, and more. Nearly all the loans featured similar "advanced profit distributions."