New Jersey Commercial Shopping Center Saved Through Discounted Payoff of the Property

April 14, 2011 - PRLog -- SITUATION:  A New Jersey LLC owned and managed a previously popular shopping center that, due to negative economic conditions, became plagued with high vacancies and declining rental rates. The Note was entered into during June 2000 with an original principal of $4,400,000 and a maturity date in June 2010. The indebtedness at maturity was just under $4,000,000.

The geographic region of the property was particularly impacted by the recent recession resulting in high unemployment rates, a sluggish economy, and a bleak outlook for the retail shopping center market. The severe market downturn greatly devalued the asset leaving no reasonable expectation for any meaningful improvement in the near future.

The LLC was unable to meet debt service with financial reflecting the property was only marginally able to break even. Additionally, the property was in maturity default and given its financial condition, was unable to get refinancing.  

WHAT WAS DONE:  Guardian Solutions was able to successfully negotiate a discounted purchase of the note, including the assignment of the mortgage and other security interests of record held by the bondholders for a total amount of $1,150,000, a substantial reduction from the amount due and owing on the note.

About Guardian Solutions
Guardian Solutions is a focused commercial loan restructuring firm. Guardian works with commercial properties across the United States and is committed to helping commercial property owners save their properties. The company’s experienced professional staff consists of MBA’s, Real Estate Professionals and financial analysts. Each specialized team member is personally devoted to his or her part in helping owners of distressed assets.  For more information, visit http://www.GuardianSolutions.org

Contact:
Jamie Sene
Vice President, Marketing
Guardian Solutions
727-442-8833
www.GuardianSolutions.org

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Guardian Solutions is one of the nation’s leading commercial loan modification firms. Our team of MBA’s Accountants and Real Estate Professionals assist companies avoid the pitfalls associated with their commercial mortgages that are called due.