Delray Beach, FL, Sep 22, 2021: QuickLiquidity, a direct lender for commercial real estate, has announced that it has closed a loan secured by an illiquid and non-controlling ownership interest in a commercial real estate syndication.
The syndication owns a $185 million institutional quality mixed-use property located in Arlington, VA, that features over 73,000 square feet of ground floor retail and 366 luxury apartment units.
In 2015, the borrower had invested in the commercial real estate syndication as a passive investor. Since then, the sponsor oversaw ground-up construction and stabilization of the mixed-use property. Today, the property is completely stabilized with a market occupancy.
The borrower had a significant amount of equity in the syndication but because he is a passive investor, his ownership interest is completely illiquid and non-controlling. The borrower had virtually no ways to unlock his equity until the sponsor decides to sell the property, which could take years.
When the borrower needed immediate capital to take advantage of a time sensitive investment opportunity, he discovered that his equity was trapped.
QuickLiquidity offered the borrower a solution by providing a loan secured by his passive ownership interest in the commercial real estate syndication. This allowed the borrower to receive the capital he needed, while maintaining complete ownership of his stake and any future property appreciation.
The syndications operating agreement required that the borrower get the sponsors consent for him to pledge his ownership interest. QuickLiquidity worked directly with the sponsor to get them comfortable with the proposed transaction and was able to close the loan in a timely manner.
“We’ve found that commercial real estate investors are often asset rich but liquidity poor”, says A. Yoni Miller, Principal of QuickLiquidity. "We’ve created an innovative loan program to help investors unlock their trapped equity. Whether they are a passive investor or the sponsor who put it all together, our financing can provide them with immediate liquidity.”
Have questions regarding loans secured by LLC interests, LP interests, TIC interests, or DST interest? Give us a call right now at 561-221-0881.
