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A Borrower Funds A Small, Self-Liquidating Loan Outside Of CMBS

Despite the loan's quirks, the borrower found a large life insurance company delighted to take on the risk.

By Erika Morphy | erikamorphy | Updated on June 19, 2017

Alex Draganiuk

WASHINGTON, DC–A few years ago Ashley Capital, a New York City-based real estate firm, purchased a building called the Interchange Business Center. A 792,000-square foot industrial property located on a 55-acre site in La Vergne, TN, it was a former Whirlpool manufacturing site about 16% occupied by the time Ashley Capital acquired it.

Ashley did a gut renovation on the property and then, recently, went looking to place permanent financing on it. The size of the loan it wanted was not very large but some of the demands by the borrower made the transaction less than vanilla. Still, eventually it found what it was looking for, despite the tightening capital market. Or perhaps that should be it found what it was looking for because of the tightening market. Ultimately Ashley Capital realized all of its demands because its lender recognized what a great sponsor it is and the building itself is a good investment, Alex Draganiuk, director of the Debt and Equity Finance Group for Mission Capital Advisors tells GlobeSt.com.

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