Since the Note Holder indicated that they had already received an offer to purchase a large pool of their holdings, Rhenium focuses on finding local investors, or national investors with a presence in Philadelphia who would pay a premium on the asset.  Rhenium utilized a “wholetaling” strategy to market the asset, indicating that investors may purchase the asset in a larger pool, or one-off.  This encouraged multiple small-cap investors that would not have been able to carve the asset out to submit bids at a premium to the larger investment groups making offers on the greater pool.

Demand for the subject asset was complicated by a low demand for commercial assets in the neighborhood, as well as the perceived difficulty of the foreclosure process in the city of Philadelphia (particularly due to the residential units).  Ultimately, pricing from Rhenium’s investors beat the wholesale purchasers, and the Note Holder carved out the subject asset and sold it to a national investor with interests in the Northeast.