The holder of a non-performing junior lien on this fine coastal property had an opportunity to take title in a friendly transfer. At the same time, they needed to exercise a significant short-pay opportunity with the defaulted senior lien. Time was of the essence in order to maintain the favorable short-pay agreement, a precursor and critical component to the junior-lien holder’s efforts to recover their considerable (much jeopardized) investment.
As always, there were a few issues and complexities, though at its core, the transaction included all the necessary elements: (a) terrific, well-located security, (b) cooperative parties, (c) a financially capable sponsor and (d) a loan exposure under 60% LTV and well below the market turbulence.
Seattle Funding Group of California worked closely with the various parties to quickly document and close the transaction, pay-off the discounting senior lien, provide the construction funds for necessary repairs and to reposition the asset/sponsor/new owner to protect the significant dollars they had at risk.
Certainly not your everyday acquisition loan, but the required flexibility and coordination were well within the strike zone for the experienced professionals at SFG of CA.
Special thanks to Chris Love’s Team for aiding in the value assessment. We appreciate our long-standing relationship and your in-depth knowledge of the beach area market.