NEW JERSEY—Massey Knakal Capital Services has closed an $8 million loan collateralized by a 62,000-sq.-ft., grocery-anchored shopping center in Boonton, N.J. The sponsor is a public real estatetrust.
“A&P was the anchor, a company that was in bankruptcy when the loan was first discussed,” said Scott Aiese, director, who exclusively handled the transaction. “The owner did not believe a lender would risk lending on a property where 70 percent of the income came from the principal tenant that was openly insolvent and did not report sales figures. Even when A&P emerged from bankruptcy, the company did not release anyinformation on the health of the company. We overcame this challenge by performing downside underwriting and got lenders to focus on the strength of this location, regardless of what happened to A&P.”
Massey Knakal Capitalspecializes in a variety of debt- and equity-based real estate financing including fixed/floating rate loans, constructions loans, mezzanine loans, bridge loans, preferred equity and joint-venture equity.