6-10-16

12A — June 10 - 23, 2016 — Financial Digest — Creative Financing — M id A tlantic

Real Estate Journal

www.marejournal.com

C reative F inancing

The Henley Group Shopping center rebounds post $10MM loan cut

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•Weak tenant market & $3MM of TI required •Special Servicer negotia- tion and document challenges Working in lockstep, The Henley Group and the bor- rower were able to get the lend- er to cut the A note by $10MM. In the past few months, the ownership has signed leases with two national, big box stores increasing occupancy by 39,000 s/f. The center’s overall occupancy has improved to ap- proximately 82% and debt ser- vice is comfortably over 1.00x. Nationwide, newer retail centers are phasing out ag- ing plazas and strip malls.

e recently published a story about a dis- tressed grocery-an-

Having worked on a myriad of retail projects, we strongly suggest that retail owners as- sess their property’s value 6 to 12 months prior to refinance. While 2/3 of retail loans pay off in full at maturity; 1/3 of retail loans do not. Borrower’s may need to modify or restructure their loan so that the required re- investment capital produces an acceptable return given the current capital stack. Certain 2006 and 2007 vintage CMBS retail loans are particularly vulnerable to refinancing diffi- culties as many of these prop- erties were financed at the peak of the capital markets. Owners with complex CMBS issues have been our clients for eight years, 100% focused on our craft, we give you our expertise and give you back your time. n CIS, Inc. selected as top 50 affordable housing developer LAWRENCEVILLE, NJ — Community Investment Strategies , a recognized builder of award-winning 55- plus and multi-family hous- ing communities throughout New Jersey, was recently recognized as one of Affordable Housing Finance’s Top 50 Af- fordable Housing Developers in the nation. The Affordable Housing Fi- nance Top 50 was developed as a way to identify development and costs trends in the afford- able housing market nation- wide, capturing a snapshot of industry activity. Affordable Housing Fi- nance’s Top 50 also includes an overall total number of units under development among all 50 winners. This year’s list includes 52 companies who have collectively started con- struction on 226 developments with 17,653 affordable units. “We are so pleased to make the list again this year,” said Christiana Foglio , founder and CEO of Community In- vestment Strategies. “We had an active 2015, completing 171 units, starting construction on 203 units and closing our first HUD Rental Assistance Demonstration (RAD) deal. We are already continuing this momentum into 2016, breaking ground on a brand new 110- unit property in May and com- pleting construction on another 93-unit community in June.” n

chored Shop- ping Center w i t h o v e r 9 0 , 0 0 0 s / f available for rent repre- senting over 50% of the total NRA. The road to recovery was paved with mul- tiple obstacles: •Property was 57% vacant •$10MM over leveraged CMBS Loan vs. current Prop- erty value David Goldfisher

Mid Atlantic CMBS Loan Serviced by C-III $10,000,000 Industrial Complex Discounted Pay-Off

New England CMBS Loan Serviced by CW Capital $25,500,000 Shopping Center A/B Note (A-Note reduced by 56%)

Mid Atlantic CMBS Loan Serviced by LNR $47,000,000

Mid Atlantic CMBS Loan Serviced by LNR $11,800,000 Retail Avoided Foreclosure and Mitigated Late Fees

Office

Lease Terms & Escrow Release Modification of Tenant’s

* 2016 Notable Engagements $100,000,000 Lifestyle Center in Mid Atlantic $90,000,000 Office & Industrial Portfolio in Mid Atlantic $24,500,000 Limited Service Hotel in Mid Atlantic $55,000,000 Full Service Hotel in Midwest $30,000,000 Anchored Retail Shopping Center in Upstate NY

O: 508-318-6520 | M: 617-320-0284 david@thehenleygroup.com www.thehenleygroup.com David Goldfisher The Henley Group Inc.

Workout Advisory for CMBS Loans

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