1001 Frontier Road

  • Bridgewater, NJ
  • 234,313 RSF
  • Unrealized

A defaulted mezzanine loan was acquired at a significant discount to face value from a CDO controlled by a public mortgage REIT who was in distress and actively selling assets to generate liquidity. At the time the mezzanine loan was acquired, the senior mortgage debt was in maturity default and foreclosure proceedings were underway. As mezzanine lender, we successfully intervened in the foreclosure action delaying the completion of the senior mortgage foreclosure. Approximately seven months after acquiring the mezzanine debt, the senior mortgage was also acquired via an online auction for 51% of par value and the equity interests in the property were foreclosed via a successful UCC foreclosure auction. A long-term lease extension with the property’s sole tenant was finalized and a refinancing was originated, repatriating invested equity.