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Obstacles to close included language barrier with Vietnamese borrower and structuring full recourse “bad boy” carve outs on a non-resident borrower to satisfy loan investors.
PathStone Capital, a full-service commercial real estate finance company, is proud to announce that it has closed a commercial real estate mortgage for a 50-unit apartment complex in Desert Springs, CA.
PathStone Capital arranged the loan through Liberty SBF and secured the $3.25 MM CMBS loan for a borrower whose circumstances needed a little more attention to detail than usual.
The high net worth borrower is an experienced real estate investor from Vietnam. PathStone Capital was able to successfully navigate a language barrier and structure a transaction for a non US resident that would enforce full-recourse “bad boy” carve outs - acceptable to both rating agencies and B-piece investors.
Alex Cohen, CEO of Liberty SBF, said that the deal was complex and presented some challenges but PathStone Capital and his company was able to bridge the gap.
“This deal highlights one of the main strengths we bring to the table at PathStone Capital and our proven lending relationships, said Dan Vecchies, CEO of PathStone Capital. “We are able to take a complex deal and structure the mortgage so that everyone is comfortable by the time we get to closing. In this case we created a special reserve for 'bad boy’ carve-outs that were acceptable to both a savvy real estate investor and the secondary market participants in a cross-border deal.”