Property: Industrial Building in New York
Loan Balance: $48 million
Problem: The vacancies in this industrial property reached 75 percent, and the property was listed for sale. The current value of the property was difficult to determine, but the appraisal indicated $20 million. The property’s NPV (net present value) was $10.1 million.
Solution: The borrower sold the property for $18 million, and the Special Servicer agreed to $12 million DPO. The Special Servicer agreed to give the borrower 4 months to close with the new buyer. The borrower netted $6 million in profits, less brokerage commission. The new buyer obtained a $12 million loan.