Regional Capital Closes $3.3 Million Bridge Loan Transaction
Schuylkill County site – approximately 13 miles from Pittsburgh - proposed for commercial development. Current use is golf driving range and recreational venues.
MARLTON, NJ (July 2006) – Regional Capital Group, LLC, a national specialty real estate lending and investment company, recently closed a $3.3 million commercial bridge loan for a 27.5 +\- acre industrial zoned commercial parcel located in Monroeville, Schuylkill County, PA approximately 13 miles east of Pittsburgh.
Although this site is zoned as an industrial parcel, the current use is a golf driving range and other recreational venues. The borrower experienced a number of problems with the site which began when the primary tenant on the site defaulted and sought bankruptcy protection.
Once the borrower regained control of the site, his cash flow was not sufficient to continue operations and he also filed for bankruptcy protection. The borrower has been operating the site since that time and required funding to consolidate debt and bring the property out of bankruptcy.
“While the businesses are now operating, they have never reached the levels of success they enjoyed prior to leasing the property - therefore they have chosen to sell the project,” reports Paul Braungart president of Regional Capital Group, noting that his company prides itself on being able to find a positive solution to difficult situations. “We are creative and provide loan structures to accommodate the needs of our borrowers.”
THE REGIONAL GOAL: EMPOWER THE BORROWER
Regional Capital Group’s goal was to provide a loan that would allow the borrower to market the property while continuing to operate the business. When the site was in bankruptcy, potential buyers would not make offers based on the true value of the parcel. They were looking to acquire the property at a steep discount due to the distressed nature of the situation. Regional was able to structure financing by utilizing the borrower’s equity in the property to consolidate the existing debt and dismiss the bankruptcy.
How did Regional Capital Group enable this outcome: RCG 1, Regional Capital Group’s fund designed specifically to accommodate loan requests for short-term Bridge and Construction financing for a variety of property types. We analyzed the project, studied the market and, because of the flexibility of RCG1, we were able to provide our borrower with the financing he needed for long term success rather than a quick fix,” Braungart reports.
ABOUT RCG 1
Announced in 2005, RCG 1 is a real estate fund designed specifically to accommodate loan requests that require funding for acquisition, land improvement, construction, rehab and reposition, bridge, joint venture, gap equity and mezzanine. Capitalizing on the extensive experience of the principals, this new fund allows RCG to continue a creative approach to real estate lending. The company has specialized in “thinking out of the box” when structuring a loan.
ABOUT REGIONAL CAPITAL GROUP
Regional Capital Group, a Direct Commercial Real Estate Lender based in Marlton , New Jersey , provides unique financing for real estate. Regional Capital Group offers an alternative to traditional financing sources with creative loan programs for commercial and residential properties. Funding may take the form of debt, participating debt, equity or mezzanine. Regional Capital Group specializes in a variety of property types, including: multi-family, office, industrial, retail, mixed use, self storage, and residential tract development. Loan programs include land, land improvement, construction, bridge, project rehabilitation, gap financing, conduit lending, and mezzanine loans.
For more information, visit Regional Capital Group online at http://www.regionalcapital.com or call (856) 983-4800.
