| Another example of our success was the closing in March of 2011 of a $17,000,000.00 loan in connection with the refinance of a recently built multifamily propery in Pennsylvania. Our customer was one of the largest and most sophisticated owner operators of multifamily properties in the New Jersey and Pennslyvania markets, and needed to exit a construction loan. The property was not fully stabilized and the agencies fell way short on loan proceeds. We achieved the best of both worlds, by obtaining a high leverage, fixed rate loan with excellent terms. We were able to persuade the lender to look at the property on a stabilized basis to support higher loan proceeds, which is rarely the case with multifamily properties. Our customer was not sure that we could find the solution nor an aggressive and creative lender. Yet, we found both for them!
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| We obtained an $18,000,000.00 loan for a large New York based private real estate group which owns a significant amount of commercial and multifamily property in New York City. The additional equity investor in this transaction was an equity division of Lehman Brothers. The property was nearly 35% vacant; the senior owner had filed for bankruptcy. Our client was the junior owner (in no way affiliated with the senior owner, other than through this property) and wanted to obtain 100% financing for buying out the senior party’s interest through the bankruptcy court, carrying the debt shortfall and making needed capital improvements to the property. There was significant negative debt service coverage from the inception of the loan. We obtained this loan on a non-recourse basis without the owner surrendering any equity to the investor and we also structured a liberal prepayment penalty. We raised 100% of the needed funds to buy the senior interests and retire the existing debt on a straight first mortgage basis.
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