8A — March 16 - 29, 2012 — Financial Digest — Mid Atlantic Real Estate Journal
www.marejournal.com
F INANCIAL D IGEST
egional Capital Group (“RCG”) closes on an $8.9M discounted note Case Study by Paul Braugngart, Regional Capital Group Regional Capital Group closes on bridge funding for two student housing facilities R RCG. leasing of the units, which made a huge difference, but it was after the fact.
tension fees in an effort to buy more time to finance the exist- ing lender out of the deal and this is where RCG stepped in. RCG structured 100% financ- ing of the discounted payoff amount in addition to a por- tion of the extension fee in the time frame set forth. This not only allowed for the Borrower to realize the discount, but to also save the assets and not have to come out of pocket with additional funds. RCG utilizes a diverse back- ground and vast knowledge to complete transactions spread across a broad range of asset
classes. RCG focuses not only on the execution of specific deals, but also no understand- ing each client’s needs and goals, to complete short term or permanent funding. We also of- fer alternative loan structures which may fall outside of the traditional lending sources to expedite a closing should an opportunistic situation arise. In addition to a primary role as a lender, RCG partners with developers and investors to acquire performing and nonper- forming real estate assets, RCG has a unique team with expe- rience in real estate lending and investment, development, entitlement, construction and property management. RCG’s staff consists of problem solv- ers with the resources to create unique solutions to complex real estate funding issues. They have closed in excess of $5 Bil- lion in real estate funding and investment over their careers. RCG continues to provide capital for a variety of real estate projects in challenging times. They work together with other lenders, investors, and developers to provide funding for troubled projects or those that have lost funding due to the contraction of the market. RCG utilizes it funding capa- bilities to take advantage of opportunities with short time frames and makes decisions very quickly when presented with specifics on a situation. The principals have weathered troubled markets in the past and have provided consulting and loan work out direction to lenders and investors of all types for over 30 years. This transaction is an example of a situation where RCG utilized its vast experience and intu- ition to solve a problem. Paul Braugngart is the founder and president of Regional Capital Group (“RCG”). ■ BETHESDA, MD — Marc Tropp, Managing Director of Eastern Union Commercial, announced the refinance of a mixed use retail of- fice building in the heart of downtown Baltimore, MD for $3,100,000. The building consists of 102,568 s/f of rent- able space, currently leased as office space with first floor retail. ■ Tropp of EUC refinanced for $3.1m
The Borrower purchased the sites back in 2002 and had substantial equity in the as- sets and continued to achieve strong returns until the eco- nomic downturn. In order to keep occupancies high, while also staying competitive in the marketplace, the rental rates were lowered, which in turn reduced the overall net operat- ing income. This caused the property to go into default and end up with a special servicer. The company then reorganized its strategy for the sites, as it related to the marketing and
purchase of two 100% oc- cupied Stu- dent Housing Facilities lo- cated in the R i c hmo n d , Virginia area. The Borrow- er is a na-
Because of this situation, the Borrower had the opportunity to buy the note (which wraps both assets into one loan) at a substantial discount. The Bor- rower starting working with an existing relationship they had at a local bank, until the bank suddenly changed their geo- graphical lending parameters which disqualified the asset. The borrower was left with less than 40 days before they would lose the assets. They had been and continued to pay ex-
Paul Braugngart
tional, multi-family property ownership, investment and re- development organization with an extremely large portfolio of assets and a past borrower of
$5,850,000 Eastern PA Refinance Multifamily 98 Units
$50,000,000 Newark, NJ Centre Market Bldg. Office 380,000 S/F
$19,990,000 Charleston, WV Chase Tower Class A Office 280,761 S/F
$10,000,000 Ridgefield, NJ Shopping Center Retail 132,400 S/F
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