Distress

TNP Spring Gate Plaza, LLC Filed Chapter 11 in July 2020, Three Days Before a Scheduled Foreclosure Sale

For this Delaware Statutory Trust (DST) offering, the public record establishes financial distress and a foreclosure sale that was halted, not a completed foreclosure.

Published

TNP Spring Gate Plaza, LLC filed for Chapter 11 on July 10, 2020, three days before a foreclosure sale scheduled for July 13, 2020. The petition stopped that sale.

The offering sold to investors carried the name TNP Spring Gate Plaza, DST. The entity in bankruptcy was the like-named limited liability company.

Thompson National Properties brought the DST to market in late 2013. Its terms, per its Form D:

As filed


Sponsor

Thompson National Properties

Asset class

Commercial

Exemption

506(b)

Offering ceiling

$5,150,000

Minimum investment

$25,000

First Form D

November 25, 2013

The span from that first Form D to the petition is 6.6 years.

No return to investors is disclosed on the record, and the Form D states no distribution terms. What the record establishes is the bankruptcy petition and a foreclosure sale that was scheduled and then halted. It does not establish that a foreclosure was completed, or how the property was ultimately resolved.

This disposition is classified as a distressed outcome, a separate category, and does not enter that full-cycle count.