“We started construction the day after we bought the mortgage,” Procida says, noting that the model could be used to benefit the overall economy. “If we don’t fix all these half-built buildings that impact the market, we’ll never get out of this thing.”

In fact, Procida Funding recently completed a similar transaction for TAK Group on the company’s newly completed Freehold Commons office building in Freehold, NJ, for which Procida purchased and restructured the $7.7 million mortgage. Other recent transactions completed by Procida include a $4.25 million bridge loan to buy down the debt at the Gull’s Cove Condominiums in Jersey City, NJ, and a loan to purchase the debt on Ocean Walk, a partially completed condominium project in the Belle Harbor section of Queens, NY.

Procida looks for a discount between 10% and 70% to acquire a loan, depending on how much a property is overvalued. Future deals with FGL could be in the $2 million to $10 million range with value to be added, with FGL to over longer-term financing after the project is stabilized.

“We’ll be able to bridge the term,” Procida says. “Now the borrower won’t have to go through another set of documents. That’s the real point.”