Whispering Palms, Phoenix, AZ

Whispering Palms Apartments is a 200 unit affordable housing community located in Phoenix, Arizona. The Reliant Group acquired the subordinate bonds secured by the property, and worked closely with MBIA, the senior bond insurer, to engineer an operational turnaround at the property. A new nonprofit borrower, with whom Reliant had completed several prior turnarounds, agreed to assume the loan obligations. A new property management company was hired, and intensive oversight was provided by Reliant. A forbearance agreement and workout was structured and Reliant invested nearly $1,000,000 in capital improvements.

Reliant made several key cosmetic upgrades to enhance curb appeal and marketability, including: (i) re-roofing the property and exterior painting, (ii) repaving the pool area and adding new pool furniture, (iii) renovating the leasing office, (iv) placing a new monument sign in front of the property, (v) re-landscaping, (vi) adding a new playground structure.


In addition, Reliant made a significant commitment to the introduction of social services at the property.  Rainbow Housing now offers computer learning classes, GED, Language classes and day care programs.  The property was 69% occupied and was operating at a loss when Reliant stepped in. Less than one year later, occupancy had increased to over 94%, rents had increased, and concessions/bad debt were nearly eliminated.