Commercial and Multifamily Property
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| Another example of our success was the closing of a $29,000,000.00 loan in connection with the refinance of 4 multifamily properties in Connecticut. We were able to persuade the investor lender to look at the under market rents to support higher loan proceeds, which is rarely the case with multifamily properties where such proceeds are generally derived on a typical earn out basis. This structure enabled us to assist our client in cashing out of this investment. This funding was done on behalf of a public company, which had considered selling two of the properties, until it realized what we could achieve for it.
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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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