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Featured Closing: $8.0M Loan, New Jersey

11/21/2012 8:43:49 AM/ Massey Knakal/ Closings

Massey Knakal Capital Services is pleased to announce the closing of an $8.0 million loan collateralized by a 62,000 square foot grocery anchored shopping center in Suburban New Jersey. The non-recourse loan closed at 4.2% for 10 years.  The sponsor is a public real estate investment trust.
“A&P was the anchor, a company that was in bankruptcy when the loan was first discussed.  The owner did not believe a lender would risk lending on a property where 70% of the income came from the principal tenant that was openly insolvent and did not report sales figures. Even when A&P emerged from bankruptcy, the company did not release any financial information on the health of the company,” said Director Scott Aiese, who exclusively handled this transaction. “We overcame this challenge by performing downside underwriting and got lenders to focus on the strength of this location, regardless of what happened to A&P,” added Aiese.

Click here for press release