PSCD Trinity LLC - Case Summary
PSCD Trinity, LLC has filed for Chapter 11 bankruptcy to halt a scheduled foreclosure auction of its Watermills mixed-use complex following a maturity default on approximately $51.3 million in secured debt.
Business Description
Headquartered in Watertown, MA, PSCD Trinity, LLC ("PSCD" or the "Debtor") functions as a real estate investor and developer. The Debtor owns and operates a prominent mixed-use apartment complex known as "Watermills," located overlooking the Charles River at 330–350 Pleasant St. in Watertown, Massachusetts.
- The Watermills property consists of two three-story buildings connected by a skybridge, featuring 99 residential units and 17,941 square feet of ground-level retail and office space.
Corporate History
The Debtor is managed by its sole Member and Manager, Mark Coppola, a real estate veteran with over forty years of experience in investment and development. Management has overseen PSCD's operations since the acquisition and subsequent development of the Watermills property.
Operations Overview
The Watermills complex offers a diverse mix of one-, two-, and three-bedroom residential apartments. The property is designed with a range of tenant amenities, including a fitness center, a landscaped courtyard, a rooftop terrace, and both open and covered parking featuring electric vehicle charging stations.
Commercial Tenants and Valuation
- The property’s retail space is anchored by two restaurants, a grocery store, and a cannabis dispensary.
- According to an appraisal performed by BBG Real Estate Services dated August 13, 2025, the Watermills property has a fair market value of $76.2 million.
- This valuation suggests a significant equity cushion, as the property value well exceeds the approximately $51.3 million owed to the Debtor's lenders.
Prepetition Obligations
As of the Petition Date, the Debtor’s primary funded debt obligations total approximately $51.3 million, owed collectively to Service Capital, LLC and Service Federal Credit Union (collectively, the "Lenders"). The capital structure includes:
Secured Debt
- 2016 Financing: PSCD is indebted to Service Capital, LLC under a Commercial Loan Agreement executed in October 2016 with an original principal amount of $35,855,000.
- Proceeds were used for the acquisition and improvement of the Watermills property.
- The loan is secured by a first mortgage, assignment of rents, and security agreement on the Watermills property, perfected via filings with the Middlesex County Registry of Deeds and the Massachusetts Secretary of State.
- 2020 Financing: PSCD is indebted to Service Federal Credit Union ("SFCU") under a July 2020 agreement with an original principal amount of $5,000,000.
- This obligation is secured by a second mortgage on the Watermills property.
- Guarantees and Cross-Collateralization:
- Both the 2016 and 2020 obligations are guaranteed by Mark Coppola and World Realty & Development, Ltd, a non-debtor affiliate.
- PSCD granted a third mortgage on the Watermills property to secure the obligations of World Dracut, LLC, a non-debtor entity, to SFCU. However, the Debtor notes that World Dracut’s own assets are appraised at approximately twice the value of the debt secured by this third lien.
Other Liens and Unsecured Claims
- Municipal and Mechanic’s Liens: The property is subject to approximately $125,237 in municipal liens and a mechanic’s lien held by Pro Con Inc.
- Trade Debt: As of the Petition Date, the Debtor has approximately $93,616 in accounts payable.
Events Leading to Bankruptcy
Refinancing Challenges and Default
The Debtor’s financial distress was precipitated by the maturity of the 2016 Financing on November 20, 2024. Following maturity, the Debtor engaged in negotiations with its Lenders to refinance its obligations.
- On February 6, 2025, the Lenders issued a commitment letter requiring PSCD to close on a refinancing by February 28, 2025.
- However, on February 14, 2025—prior to the expiration of the commitment letter’s deadline—the Lenders declared a default and notified PSCD of their intent to exercise remedies.
- Subsequently, the Lenders scheduled a foreclosure auction for the Watermills property for December 10, 2025.
Chapter 11 Filing and Strategy
To stay the foreclosure auction and preserve the substantial equity in the Watermills property—estimated at over $20 million—PSCD filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Massachusetts.
- Operational Continuity: The Debtor has filed customary First Day motions to ensure business continuity, including an emergency motion for the use of cash collateral to pay ordinary course expenses.
- A separate wage motion was deemed unnecessary as employees were paid current through December 5, 2025.
- Retention of Professionals: The Debtor seeks to employ Prince Lobel Tye LLP as bankruptcy counsel, Verdolino & Lowey as financial advisor, and Newmark as real estate broker to assist in the restructuring process.