I was modeling a 2-3% IRR on aggressive numbers when I last worked on it. It was acquired with a proforma 18% IRR. Whenever it's sold, it's going to return less

I was modeling a 2-3% IRR on aggressive numbers when I last worked on it. It was acquired with a proforma 18% IRR. Whenever it's sold, it's going to return less than 1.0x. Not sure how bad the loss will be. Even if it is recapped, the deal will require a significant cash-in refinance. If the business plan is saved and it takes you another 4 years to exit at a better number, that 4-yr now 8-yr deal results in say a low single digit IRR. Sponsor makes no money and the project sucks up even more resources & labor. But depends if your capital partner is willing to ride it out and if you can even recap where the numbers work