Real Estate Capital of America (ReCap) Secures Financial Ssolution for Major Pharmacy Chain Rite-Aid

NEW YORK - Oct. 9, 2013 - PRLog -- Real Estate Capital of America, (ReCap), secures financial solution for major pharmacy chain Rite-Aid.

The client was referred to ReCap by their long time real estate advisor after they failed to find lender that was willing to provide financing to refinance their current loan.

The client was already in maturity default for over 1 year because their existing loan had expired and ballooned. The loan was in special servicer whom didn’t even want to enforce the default given the nature of collateral is two Rite Aid Store and would get less than what they are owed in a foreclosure proceeding.

Rite Aid Corporation, which has a low credit rating, is considered by many credit raters and Wall Street analyst to be one foot away from bankruptcy.  To worsen matters, the store location is far from ideal. Rochester local economy and real estate market has suffered recently. In fact, Moody has just downgraded Monroe County credit rating below A with negative outlook.

Had these two properties been in metro NY, some lenders might have given it a slim chance and may have been willing to take on the risk of Rite Aid vacating the property. At it’s current location, however, it would prove difficult to replace the tenant or to the possible of reposition the properties for other commercial use.

Johnny Su, COO, of ReCap, recalled the transaction took extra due diligence, research, and creativity. “A lot of extra work that other brokers just was not willing and unable to see pass the initial challenge of the tenant being a junk credit rating and depressed real estate neighborhood,” said Su.

Through its corporate contacts and its strong relationship and contacts in the capital market, ReCap was able to gather a tremendous amount of sales data and store performance of these two individual stores to convince its capital market partner to be comfortable that Rite Aid would not abandon these stores give its sale performance and allow the investor to inject a small amount of additional capital to buy down the loan proceed and reaffirm their commitment to the new lender to issue a new loan on these two Rite Aid Store.

Arthur Singer, real estate advisor for the client, stated, ”I have complete faith in Johnny Su and ReCap. They always make the deal, no matter how difficult it is. I knew that if this deal could be saved, Johnny Su would be the one to do it.”

In a tough deal like this, clients really appreciate the strength and expertise of their bankers and advisors in helping them navigate through the unchartered water.

Tomer Dicturel, CEO of ReCap, added, “This type of deal has only strengthened and solidified our reputation with our clients, partners, and lenders. They appreciate, more than ever, the added value of our expertise in the commercial finance arena. We continue to deliver finance for our clients and help them not only survive but to thrive.”

ReCap is a prominent finance boutique assembled by distinguished experts. The professionals at ReCap assist their customers throughout the entire loan process. Their commitment to service and excellence keep customers satisfied and referring ReCap services to their colleagues. “We work hard to provide the best financing in complicated deals,” said Dicturel, “We succeed where others fail.”