Tulaberry Plaza was a thriving retail shopping center in 2007, situated outside Orlando, Florida. It was from one of the properties owned by Benedict Clarke, a general partner of a real state private equity firm. Clarke faced difficulty in January 2010 with this property, after the financial crisis and economic downturn which led Tulaberry’s tenant into bankruptcy and weakened the other tenants in the plaza.
After this turnaround, many of Clarke’s limited partners started to pressurize him, who were shown a promising returns from this investment. Along with this, Clarke’s lender, to satisfy required debt service, started to take most of the property’s cash flow.
This scenario requires Clarke to formulate the most lucrative plan that could help him to move forward form this distress. He has to draw the support from the others involved in the transaction through justifying his actions.
This case requires students to put in the shoes of Clarke to determine a suitable approach in strategic decision-making, from the context of real estate leasing and they also have to present a way that could describe the framework of management of a commercial property in distress, between lenders and equity partners.
Related Case Solutions & Analyses:
Growth of Bannari Amman Group – Family-owned Enterprise
BHP Billitons $40 Billion Hostile Bid for Potash Corp.
CSFBs China Unicom Incident
Internet Securities Inc.: Financing Growth
Finance for Managers Business Fundamentals Series
Alex Laats and NBX Corporation
Hotmail
Telewizja Wisla
Toronto-Dominion Bank — Money Monitor
Compania de Telefonos de Chile
