The $2.3-million loan is for 437 Whittenton, here, a 452,000-square-foot office/industrial building. Sitting on 40 acres of property, the loan was purchased at a discounted rate, along with the other loan which came in at $700,000 for the 40,000-square-foot 115 Dewey St.

CEO of SilverLeaf, Shane Baldwin, explained that the company had purchased the loans at a discount, somewhere over $1 million for both loans. Baldwin tells GlobeSt.com that, for example, the $2.3 million loan can be brought to the borrower and renegotiated to between $1.26 million and $1.9 million and SilverLeaf still makes a profit. The banks, meanwhile consider these loans "subperforming," according to Baldwin. The combination, essentially, is win-win-win, where the banks gain much-needed liquidity, SilverLeaf turns a profit and the borrowers can pay off a lower principal.

SilverLeaf also purchased a 42,000-square-foot medical office/condo building in Torrance, CA--25550 Hawthorne Blvd. The purchase was from Marathon Structured Finance Fund, which had been selected for PPIP, but needed $500 million of liquidity in order to participate. This sale was an effort to secure that liquidity.