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Pinnacle, KABR Pick Up Construction Loan

CLIFTON, NJ-The workout firm and opportunity fund purchased the loan for 39 unsold residences at Winthrop Court at a substantial discount.

By Alyson Grala | Updated on April 30, 2010

CLIFTON, NJ-On the heels of having taken over the development of more than a dozen distressed projects in New Jersey and Connecticut, Pinnacle Solutions, the workout subsidiary of The Pinnacle Cos., and the KABR Group have purchased a nonperforming construction loan for 39 unsold residences at Winthrop Court, a 270-home community here. Pinnacle will now market these residences, which were purchased at a substantial discount from their original face value–65% less than the outstanding balance on the loan, in fact.

“This transaction is a prime example of Pinnacle Solutions and KABR’s ability to consistently target and close on nonperforming bank debt in highly challenging economic conditions,” Brian M. Stolar, president and CEO of the Pinnacle Cos., tells GlobeSt.com. “We are currently seeing significant deal flow to acquire similar nonperforming loans at substantial discounts. We have the track record, capital and experience in this market niche, having acquired distressed debt and turned around troubled assets, including several thousand residential units, for over 25 years.”

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