RED BANK, NJ-The Besen Group NJ has closed on a sub-performing loan for a warehouse in Union and a non-performing loan for a half-empty, environmentally contaminated office building here.
“Disposing of commercial and residential loans on behalf of financial institutions allows lenders to free up capital, clean up their balance sheets and ultimately reinvest this capital back into the local markets,” said Besen's Samuel P. Boyd.
Jonathan B. Horn added that “These two loans are a great example of the Special Assets team's ability to trade loans secured by all assets types and all performance classes.“
In Red Bank, a high-net-worth private investor was found within two weeks to provide the loan. Besen's Monmouth County specialist Zachary Tuckman sourced and executed the all-cash transaction for the Red Bank property on behalf of an undisclosed national bank.
The building was more than 50% vacant at the time of sale, had an unpaid principal balance of $3.275 million. A lien had been filed and there was a court appointed receiver in place.
In Union, the sub-performing loan on a 33,480-warehouse had an unpaid principal balance of $1.14 million owed to a New York City-based community bank that was Besen's client. Besen 's team sourced and executed the all-cash transaction in less than three weeks, securing a California-based hedge fund as the buyer.
The building was 60% vacant and the loan was over 60 days delinquent. The borrower had been repeatedly and frequently delinquent since 2008, said Boyd.
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