| |
| Tuesday, October 7, 2008 |
| Borrower | A successful doctor, through a special-purpose LLC | |
| Loan | a $12 million three year loan | |
| Collateral | a 12-acre property in Monmouth County, NJ, plus seven other properties in New Jersey, New York and Florida | |
| Guarantors | The Doctor | |
| Purpose | The loan enabled the doctor to close on the property as part of a 1031 exchange where (unusually) the purchase occurred before the associated sale. The property would have been sold to a higher bidder if the loan had not closed at the time. | |
| Exit strategy | The borrower has some of his other properties under contract and expects to close these sales soon. These will satisfy the section 1031 requirement while leaving about half of the loan outstanding. Tje borrower expects to re-finance the remainder. | |
| Outcome | The loan has been paid in full out of the parceeds of sale and a refinance. |
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