Burlington, NJ — Aspen was the winning bidder on the TenX auction platform for the purchase of 2 & 6 Terri Lane, Burlington.
The purchase involved a warehouse building of 57,600 s/f and an offices building of 25,000 s/f.
Jacklene Chesler of Colliers managed the sale on behalf of Rialto.
The purchase involved the first ever assumption of a Defaulted CMBS mortgage as part of the purchase.
The Special Servicer arranged for Aspen to assume the existing debt with 4.90% interest rate.
The assumed debt came to 82% of the purchase price.
Assumption of the debt enabled the Special Servicer to achieve a significantly higher sale price and recover unpaid interest.
In the currently lending environment, financing the purchase of distressed property with defaulted debt is very limited.
Many lenders have completely stopped lending on commercial real estate.
This newly tested sales model may become more common as lenders realize they can achieve more value by having a loan assumed by a strong, experienced, well capitalized buyer.
Philip Proetto, Aspen’s CEO, says this the 4th property Aspen has purchased on an auction platform.
Three of the properties involved defaulted mortgages.
6 Terri Lane was originally built for warehousing but was rented over the years as office space. Aspen will be vacating the office tenants and converting 6 Terri back to warehouse space.
Aspen is now offering the 57.600 s/f bldg. for sale and targeting a warehouse user.
2 Terri Lane is 65% leased at purchase and Aspen has already drafted a lease for ½ the vacant space .
Aspen will be bringing this bldg. back to market as soon as the new lease is signed.
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