MCA Financial Group was retained as financial advisor with a stalled real estate development known as The Grid at Mesa, a six-story mixed-use property in Mesa, Arizona. The project, envisioned to include ground-floor restaurant space, second-floor office units, and four floors of residential studio apartments, was approximately 70% complete during MCA’s engagement.
The development had entered Chapter 11 following a prolonged period of construction delays, inconsistent project scope, and the loss of stakeholder confidence. The debtor-in-possession failed to gain meaningful traction with creditors or the court, prompting the appointment of Keith Bierman as Chapter 11 Trustee. MCA was subsequently engaged to advise the Trustee in stabilizing the situation and facilitating a value-maximizing sale of the asset.
MCA’s Scope Included:
- Designing and executing a targeted marketing process for local, regional, and national developers
- Managing communications and expectations with multiple creditor constituencies
- Cash flow management and budgeting for the needs of the asset and the sale process
- Providing financial and strategic advice in support of a complex asset sale
Despite a challenging operating environment, including skepticism from key stakeholders and resistance from mechanics’ lienholders, MCA led a competitive marketing effort, resulting in five qualified Letters of Intent. We advised on buyer engagement strategies that included direct negotiations with lienholders and addressed reputational concerns voiced by the City of Mesa, whose early frustrations with prior project leadership had created additional scrutiny.
MCA’s ability to navigate the nuances of bankruptcy administration, real estate asset sales, and creditor relations contributed to a successful transaction and materially improved recovery for the estate. As noted by the presiding bankruptcy judge, the case had the potential to “go sideways,” but was instead resolved through the efforts of “talented professionals” operating with discipline and integrity.
MCA Financial Group remains a trusted advisor in bankruptcy and receivership matters, particularly where real estate, litigation complexity, and creditor recovery converge.