1663 PENFIELD ROAD is a 5,250 square foot freestanding retail building on a one-half acre site with parking for 25 cars located in Penfield, NY, an affluent suburb of Rochester.  The building is leased to Goodyear Tire & Rubber Company and operated as a Goodyear Tire Center.  The purchase price in June 1993 was less then $.2 million.  Total project cost was $.25 million.  The property was sold July 2003 for $.55 million.

.Market Opportunity
The property was built to suit as a Goodyear Tire Center by a local developer, who subsequently declared bankruptcy as a result of losses incurred in an unrelated project.  The bankruptcy resulted in a default under the property’s mortgage.  The Phase I environmental assessment performed by the mortgage holder indicated the potential of hydrocarbons in the soil.  As a result, the bank desired to sell the defaulted loan prior to foreclosure.  CCGL’s predecessor company purchased the defaulted mortgage.  Despite the financial and environmental issues, the property had an excellent location and Goodyear was a strong credit.

.Acquisition
CCGL’s predecessor company acquired the defaulted mortgage for $160,000 (a fraction of face value) in June 1993.  It confirmed the presence of hydrocarbons and formulated a remediation plan for the site.  In June 1994, CCGL’s predecessor company completed foreclosure and commenced environmental remediation, using property cash flow to fund the costs.  In June 1995, CCGL’s predecessor company financed the property in an amount sufficient to pay the remaining remediation costs and recover its entire invested capital.

.Results
During its ownership, CCGL’s predecessor company refinanced the property two additional times.  Each refinancing produced substantial excess proceeds.  In July 2003, CCGL’s predecessor company sold the property.

The property was owned by 1663 Penfield Road Associates, LLC, a single property entity.  Mark Ellman owned a 76 % interest in the property.  The other partners were close associates of Mark Ellman.  The effective annual internal rate of return to the investors was in excess of 22%.