C2R Capital acquired a non-performing senior land loan from a regional bank at a meaningful discount to contractual payoff, creating immediate embedded value at closing. The structure provides natural downside protection—if the borrower pays off the note, C2R realizes a near-term gain—while preserving upside through multiple resolution paths.

The collateral consists of roughly 11 acres of fully entitled, utility-served mixed-use land along a major interstate in the Dallas–Fort Worth area. Approvals span three development-ready tracts, including two multifamily parcels and a hotel site, with third-party valuations on a majority of the acreage indicating substantial coverage relative to basis. All diligence—including multiple appraisals, engineering review, and environmental—was completed prior to purchase, and a recent bankruptcy ruling sets a clear timeline with milestone dates leading to a potential foreclosure in early Q4 2025 if the borrower does not perform.

Paths to value include payoff at par plus fees, foreclosure followed by sale of the entitled tracts, or a consensual restructure into a performing position with appropriate reserves. Having previously diligenced the asset for an earlier attempted acquisition, C2R entered this purchase with deep familiarity and conviction—allowing the team to underwrite quickly, control downside, and capture a compelling spread between entry basis and realizable value.