The seller was KeyBank National Association, which originated the debt in 2007 for affiliated entities of Lexington Realty Trust. Cronheim CEO Andrew Stewart tells GlobeSt.com that the firm started working on the deal in February, when it originally sought to complete the transaction with one investor. Eventually, more investors were brought in to complete the acquisition.

He said the note was sold at a discount, but declined to specify the percentage. "It was a seven-year loan that KeyBank intended to securitize," Stewart says. "That never happened, so they decided a whole loan sale would get a better execution." He adds that the loan is performing and not in distress. "KeyBank was looking to raise capital," he says.

According to a statement, Cronheim choose to assemble the loan purchase as a participation given its long-standing relationship with all of the buyers. "We expect to utilize this group to finance additional projects in an environment where larger transactions are difficult to accomplish," says Dev Morris, principal of Cronheim.The company is also in the process of creating a fund vehicle to supply capital for additional loan purchases as well as new originations.