Finance for warehouses in the Bronx

Borrower		A builder facing loss of his property in a Chapter 11 bankruptcy.
Loan		$3,900,000 plus fees for two years, at 13.5% for the first year and 15.5% thereafter.
Collateral		A huge warehouse in the Hunts Point section of the Bronx. This 430,000 sq. ft. building was formerly the Alexanders Department Store warehouse. Located on 15 acres in the Bronx, the structure has 30 foot ceilings, rail lines running to the property, access to the East River, 49 truck bays all around the building, and is one mile from I-278, the main trucking thoroughfare. We also had first liens on three other properties in the New York area.
Guarantors		the borrower's wife and their sons
Purpose		The loan enabled the borrower to emerge from bankruptcy, and to preserve his equity in the warehouse.
Exit strategy		The borrower planned to lease up the building and refinance on the basis of the cash flow from the building.
Outcome		The loan was repaid in full after fifteen months.

Finance for Warehouses in the Bronx