January 12, 2017
QuickLiquidity, headquartered in Boca Raton, FL, funded $2.5 million of subordinated debt on the Minneapolis Mart, a 227,357-square-foot building situated on 20 acres in Minnetonka, MN. The property, at 10301 Bren Rd. West, is a wholesale merchandise mart, which is 100% occupied.
The second mortgage took the property from a 60% LTV up to 75%. Loan proceeds will be going toward other real estate investments of the sponsor, Talon Real Estate. The second mortgage has an 18-month term, with two six-month option extensions.
According to QuickLiquidity’s A. Yoni Miller, the asset was 60% leveraged with its first mortgage, with the sponsor unable to complete a cash-out refinance because of a stiff prepayment penalty. “In just over 30 days, we underwrote the property, structured the debt to be in full compliance with the first mortgage, and closed the loan,” Miller added.
Talon acquired the property in 2014 for $58 million.
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