Pasadena Apartments – $2 Million
Background: The investment unit originated a 2.0. million senior credit facility in order to facilitate the purchase of a Detroit apartment tower. The acquisition was a distress CMBS purchase that had a hard closing date, which if not met would cause the loss of the sponsor’s hard deposit and the property would be auctioned as part of a pool of non-performing assets.
Problem: Due to liquidity constraints caused by closing deadlines the sponsor needed a 100% loan to cost transaction.
Strategy: CCP evaluated the closing deadlines as well as the financial requirements to facilitate a closing by the required date. We chose to structure the transaction leveraging other liquid and non-liquid assets within the sponsor Portfolio to fill the equity requirements of the Fund. CCP coordinated internal due diligence, internal, external, and sponsors legal, as well as title to facilitate the closing. Although this approach posed legal cost exposure to the sponsor it was the
best means to achieve the desired end results.
Result: The loan was funded in less than thirty days start to finish.