Bridger to Advise TIC Investors Following DBSI Bankruptcy

Bridger Commercial Funding announced today that it has been retained as an expert advisor for certain Tenants-in-Common (TICs) who made investments in commercial real estate properties sponsored by DBSI. DBSI’s Chapter 11 bankruptcy filing in Delaware on November 10, 2008 may impact over 8,300 investors.

“TIC investors that acquired interests in DBSI properties face potentially severe financial and tax consequences as a result of DBSI’s bankruptcy,” Paul O’Rear, Senior Vice President of Bridger, stated. “Unfortunately, very significant investments are at risk, and investors’ tax deferral under Section 1031 of the Internal Revenue Code may be in jeopardy under certain outcomes. The financial and legal complexities of the DBSI TIC transactions are significant, suggesting the best course is the retention of qualified professionals to sort through it all.” With approximately 225 separate property transactions that DBSI sponsored, O’Rear estimated that it will take months if not years to resolve the issues that stem from DBSI’s bankruptcy.

“We are very familiar with how tenants-in-common transactions are structured, and are uniquely positioned to advise the DBSI TIC investors on how to preserve their investment. Many members of Bridger’s professional staff are bank-trained workout specialists with experience in managing over $1 billion in complex real estate workouts,” O’Rear added.

“In our view, there are two distinct advisors each DBSI TIC investor should retain—counsel to represent the investor’s legal interests before the bankruptcy court, and a real estate advisor with workout and TIC expertise to ensure that each property is sound and remains operationally and financially viable while DBSI is moved out of the picture,” stated O’Rear.

Bridger has created a website and blog dedicated to DBSI investors and the critical issues they face. Visit http://dbsiinvestorreport.blogspot.com/. Information is updated daily.

Bridger Commercial Funding offers an array of commercial real estate funding options that help banks generate fee income, enhance borrower relationships, and optimize commercial real estate portfolio risk/return profiles. The company also acts as an advisor for loan trading through BankXchange – the banking industry’s leading commercial real estate loan sale advisory service.