Jack and Marcy of Gelt Financial are excited to announce we just closed on a $1.6MM mezzanine loan on a 60k SF office building in Houston, TX. The property was valued at $6MM and we lent them $1.6MM to pay off high-rate debt. The capital provided by Gelt will be used to support the property through renovations and stabilization.
“Jack: Hey Marcy Berger.
Marcy: How are you? Hi Jack, how are you?
Jack: So, we want to talk about a deal that we just closed. It was a mezzanine second mortgage on Houston, Texas. The story, anyway, Texas is a fantastic state, a lot of big personalities in Texas. Everything’s bigger in Texas. This was, I think, what, sixty thousand square feet, seven-story building, valued at, I think, about six million dollars, and we lent 1.6 million as a second mortgage.
Marcy: As a second mortgage, and it was almost, I think, 90% stabilized.
Jack: And we held back some money. Part of the reason the borrower needed money, he couldn’t go to a bank for various reasons, but self-understood, we came through. Oh, I forgot to tell you, like the video, like the YouTube, hit the bell, or the button so you’re notified when we post more… He couldn’t go to a bank. We lent him 1.6 million for, he was paying off very, very high-rate debt, sort of.
Marcy: A couple of mechanics things, liens—
Jack: There was a partner dispute involved. We held back a couple of bucks for tenant improvement and fit-out, and he’s planning on fixing up the property. So that was the bottom line, 1.6 million second mezz piece, stabilized office—semi-stabilized office building, Houston, Texas, right? What else?
Marcy: You know what, it was a lot of paperwork, and we got it all done in a very fast manner.
Jack: Two more important things that we leave out. We focused on the collateral, not him, so it was a collateral-based loan, strictly collateral. We didn’t care about the guy’s credit; we didn’t care about his personal income; we didn’t care whatever was going on in his life. We focused on the property, and no appraisal or no third-party reports. So, second mortgage, no appraisal, no third-party reports, quick closing, collateral-based.
Marcy: And everyone was happy.
Jack: Everyone was happy. Remember when your bank says no, we say yes. Call us at 561-221-0900. Oh, it came from a mortgage broker, came from a mortgage broker at 561-221-0900. Check us out at geltfinancial.com. Remember, we’re doing not only do we do debt, first mortgage debt, we do mezzanine second mortgages, third mortgages. We just closed the third mortgage the other day. Our sister company did JV equity, things of that nature, so we’re open to all ideas. If it’s real estate secured or if it’s real estate-based, we will do it. And check us out at geltfinancial.com. Remember when your bank says no, we say yes.”
Category: Deals Done
Tag: mezzanine financing
