Boca Raton, FL, Sep 13, 2016: QuickLiquidity today announced that it completed a $1.75 million preferred equity investment in a real estate partnership recapitalization. The partnership owns a 77,000-square-foot Class A office building in an affluent suburb of Philadelphia. The property is currently 100% occupied and less than 50% leveraged with CMBS debt.
“Due to the stringent loan restrictions, the partnership is not allowed to receive a cash-out refinance or take out a second mortgage. This leaves a large amount of equity trapped in the property, with little avenues to recapitalize until the loan matures which will not be for many years. However, the loan does allow for a transfer of a non-controlling limited partnership interest. In a little over 30 days we were able to underwrite the property, structure an acquisition that is in full compliance with the loan restrictions, and close the $1.75 million recapitalization” said A. Yoni Miller, Principal of QuickLiquidity.
The sponsor looked to monetize a portion of its equity to access capital in order to strategically position themselves for continued growth through other real estate projects. By bringing in QuickLiquidity as a new limited partner, the sponsor was able receive the capital it needed while maintaining majority ownership and management control of the property.
The recapitalization includes a repurchase option which allows the sponsor to buy back the limited partnership interest from QuickLiquidity at any time, at a pre-negotiated repurchase price.
QuickLiquidity provides preferred equity exclusively to recapitalize historically stabilized and cash-flowing commercial real estate partnerships. QuickLiquidity works nationwide with strong sponsors that have a proven track record of success. QuickLiquidity acts as a passive investor and is not involved in the management or ownership of the property in any of its investments.
