ROCHELLE PARK, NJ — Against the backdrop of rising interest rates that could throw a curveball to real estate lenders, investors and developers, Case Real Estate Capital, LLC (Case) successfully exited a complex $16 million first mortgage loan after working closely with the borrower for more than year.
“An experienced New York City-based borrower that operated a chain of urology and general practice services faced liquidity challenges after embarking on an overly ambitious expansion program,” said Sanford Herrick, founder and managing principal of Case. “Following a series of complicated issues, the loan went into technical default almost immediately.”
The Case team, however, leveraged its combined decades of experience and worked closely with the borrower for more than a year, restructuring the debt, enabling a refinancing. “At the conclusion of our involvement, our principal was fully repaid,” noted Herrick. “The borrower was forthright and engaging, which was important as we collaborated to solve the challenges.”
The loan was secured by a 20,803-square-foot redevelopment site in downtown Flushing, New York, where the borrower plans to construct a 12-story medical office building, an Ambulatory Surgery Center and street-level commercial space.