Client Comeback Success

Our client had requested a loan modification from their bank due to the downturn in the market. In order to keep their tenants he had to give rent concessions to each and this has caused a 17% drop in NOI from 2009 to 2010. The bank rejected their offer of modification; at that point (February 2011) the borrowers did not make their payment and defaulted on the loan.

The collateral for the subject loan consists of two retail buildings totaling 13,132 sf. The multi-tenant buildings, comprising 8,000 sf and 5,132 sf respectfully, were constructed in 2005 and are situated on a 1.39-acre site. The property is shadow-anchored by a Wal-Mart Supercenter to the north. National tenants occupying the property include Payless Shoes,
Supercuts, Subway, and Gamestop. As of 12/31/2010, the property had an occupancy rate of 82%, with two vacant suites.

We went in and negotiated a loan modification reducing the loan balance of $2,859,457 to $1,760,000 which is the current appraised value.