Delray Beach, FL, Nov 12, 2019: QuickLiquidity has announced that it has closed a $500,000 loan secured by an illiquid and non-controlling 36% ownership interest in an industrial park comprised of 118,000- square-feet of flex space. The property is located in a major industrial corridor in Nashville, TN, conveniently located only 5 miles from the Nashville International Airport. The properties occupancy sits at over 95% and is well diversified with over 45 different tenants.
The borrower, an experienced commercial real estate investor who is asset rich but was temporarily liquidity poor, needed to quickly access capital in order to take advantage of a time sensitive real estate investment opportunity. The borrower proposed a pledge of his 36% ownership interest in a commercial real estate syndication that he had formed in 2014 to purchase a 118,000- square-foot industrial park. At the time of purchase the properties rents were significantly below market. Since acquisition the borrower has heavily invested in capital expenditures to improve the property and has aggressively increased the rents to market. The property has been completely stabilized and cash flowing for multiple years now and has a long-term fixed rate 1st mortgage loan in place with an expensive prepayment penalty.
Despite the borrowers 36% ownership interest having an estimated value of around $2.5 million, because his ownership interest was illiquid and non-controlling, he could not find any lender willing to provide him with a loan until he reached out to QuickLiquidity.
Founded in 2015, QuickLiquidity is a direct lender for commercial real estate and has built a reputation for being the industry leader in providing liquidity to limited partners and general partners invested in commercial real estate syndications through either purchasing or lending against their illiquid and non-controlling LLC, LP, TIC, or DST interests.
“Helping commercial real estate investors who have a significant amount of equity in their properties but few ways to monetize it is at the heart of what we do every day”, said A. Yoni Miller, Principal of QuickLiquidity. "We are a direct lender with the necessary resources to provide our borrowers with creative subordinate financing which allows them to free up liquidity without disturbing or refinancing their existing first mortgage.”
The borrower received a term sheet from QuickLiquidity within only days of submitting their loan request. It then took only two weeks from when the term sheet was fully executed for the loan to be documented and closed. QuickLiquidity worked with the borrower to ensure the loan was done in full compliance of the first mortgage loan documents and the operating agreement. By working with QuickLiquidity, the borrower was able to receive the capital he needed, in the time frame he needed.
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