07 Feb Long-Term Loan Workout Finally Completed with Strong ROI and Opportunity for New Investments
February 6, 2023: Worth Avenue Capital, LLC is pleased to announce that it just successfully completed a $6,250,000 debt restructuring for its investors on a high profile CRE asset in Connecticut. The loan proceeds were initially used to provide mezzanine financing several years ago towards the construction of a ground up shopping center in Connecticut. Due to various factors, including Covid, the construction project stalled and a large portion of WAC’s secured debt went into default.
WAC then undertook a long and arduous loan workout process with multiple parties that was successfully completed last week. The loan workout exercise took close to three years to complete and all of WAC’s loans were paid off in full last week including all principal, past due interest at the default interest rates and legal fees on each loan. As a result of WAC’s loan workout and debt restructuring expertise, WAC was able to achieve a 44% ROI for its investors for this loan syndication investment.
WAC now has excess liquidity that it is seeking to reinvest into new commercial loan originations. Specifically, WAC will entertain loan requests for any real estate asset type from $100,000 to $7,000,000. Geographically, WAC will also consider loan requests in the Southern New England states, New York, New Jersey, Pennsylvania and, most importantly, Florida.
Worth Avenue Capital specializes in arranging debt financing for both small businesses and real estate developers/investors and also handles bank workouts for those same clients. You can learn more about WAC by taking a look at the website and Youtube videos or by contacting WAC’s principal, Michael M. Ciaburri at worthavenuecapital@gmail.com or (203) 605-4082. WAC maintains offices in both Guilford and Greenwich, Connecticut as well as Palm Beach, Florida. Be sure to follow @worthavecapital on Twitter for the latest lending news.