17 Nov WAC Partners with Stormfield Capital to Close Loan for CT Based Construction Company
November 17, 2015
Worth Avenue Capital, LLC of Guilford, Connecticut is pleased to announce that it partnered with Stormfield Capital, LLC of Wilton, Connecticut to successfully close a $900,000 syndicated private commercial loan to a Connecticut based construction company. The loan proceeds were used by the real estate development subsidiary of the construction company to pay off an existing commercial loan with a Northeastern based community bank at a substantial discount. This new loan is fully secured by a blanket first mortgage on two contiguous buildings as part of a mixed use real estate development in Killingworth, Connecticut.
The borrower is well known to WAC and was a client of the Principal of WAC, Michael Ciaburri, during Mr. Ciaburri’s lengthy career as a commercial banker.
This transaction took shape as a result of a bank merger in which this Northeastern based community bank announced that it is being purchased by a larger Northeastern based regional bank. The larger acquiring bank in turn instructed the smaller bank that held the loan to exit the Connecticut marketplace. As such, this bank decided to offer the borrower a steep discount to the principal to pay off their loan within a very short time frame.
Since time was of the essence to close this transaction, the borrower took advantage of WAC’s and Stormfield’s private capital to close the new loan within ten days from the day that the borrower finalized their agreement with the bank.