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Client had received notice that the mortgage note on this office property had been sold by his bank to an investor group; the property was performing but was slightly overleveraged and reaching a maturity date. Several issues had to be worked through by the ownership of the property, namely replacing one partner with a new cash equity partner, along with resolving property taxes and a disputed junior lien. Our assignment was to assist in negotiating with the new noteholder and replace with a new debt capital partner.

Services

Horizon Bank was identified as the new banking partner early on and the new loan commitment helped in negotiating a discount on the investor noteholder’s loan balance. Proper leverage ratios were successfully restored and the Client ownership group was able to also lease additional parking space in the garage to their new banking partner.

Results

The new loan accomplished a reduction in leverage, a new equity partner to enter the building’s ownership group, a more comfortable debt service margin, and enhanced cash flow for the Client.

Note: We have several professionals with substantial client transactional experience prior to joining RESOURCE Commercial, which is included above.