BOCA RATON, Fla., Sept. 13, 2016 /PRNewswire/ -- QuickLiquidity today announced that it completed a $1.75 million preferred equity investment in a real estate partnership recapitalization. The partnership owns a 77,000-square-foot Class A office building in an affluent suburb of Philadelphia. The property is currently 100% occupied and less than 50% leveraged with CMBS debt.
"Due to the stringent loan restrictions, the partnership is not allowed to receive a cash-out refinance or take out a second mortgage. This leaves a large amount of equity trapped in the property, with little avenues to recapitalize until the loan matures which will not be for many years. However, the loan does allow for a transfer of a non-controlling limited partnership interest. In a little over 30 days we were able to underwrite the property, structure an acquisition that is in full compliance with the loan restrictions, and close the $1.75 million recapitalization," said A. Yoni Miller, Principal of QuickLiquidity.
The sponsor looked to monetize a portion of its equity to access capital in order to strategically position themselves for continued growth through other real estate projects. By bringing in QuickLiquidity as a new limited partner, the sponsor was able receive the capital it needed while maintaining majority ownership and management control of the property.
The recapitalization includes a repurchase option which allows the sponsor to buy back the limited partnership interest from QuickLiquidity at any time, at a pre-negotiated repurchase price.
QuickLiquidity provides preferred equity exclusively to recapitalize historically stabilized and cash-flowing commercial real estate partnerships. QuickLiquidity works nationwide with strong sponsors that have a proven track record of success. QuickLiquidity acts as a passive investor and is not involved in the management or ownership of the property in any of its investments. For more information on QuickLiquidity and real estate partnership recapitalizations please visit www.quickliquidity.com or call us at 561-221-0881.
A. Yoni Miller
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