PATTERSON, NJ—Massey Knakal Capital Services has closed a $1.5 million cash-out refinance loan collateralized by a Patterson, N.J. retail property owned by a local owner/operator.
“This asset was owned by a local owner/operator whose portfolio contains several taxpayer/retail assets in urban locations such as Patterson, N.J. and the Bronx, N.Y.,” said Morris Betesh, director, who exclusively handled the transaction. “Most lenders had difficulty with the non-credit tenancy and short-term nature of the leases to provide a cash-out non-recourse loan.”
According to Betesh, lenders were hesitant to extend a fixed-rate loan for a seven-year term because many of the current tenant leases expire within five years.
“We were able to find a small balance-sheet bank in New Jersey who understood the retail landscape in Patterson and developed a close relationship with the owner,” said Betesh.