News: Front Section
Posted: December 4, 2015
Worth Avenue Capital, LLC partners with Stormfield Capital, LLC to close $900,000 loan for CT based construction company
Killingworth, CT Worth Avenue Capital, LLC (WAC) partnered with Stormfield Capital, LLC to close a $900,000 syndicated private commercial loan to a CT-based construction company. The loan proceeds were used by the real estate development subsidiary of the construction company to pay off an existing commercial loan with a northeastern-based community bank at a substantial discount. This new loan is fully secured by a blanket first mortgage on two contiguous buildings as part of a mixed-use real estate development.
The borrower is well known to WAC and was a client of the principal, Michael Ciaburri, during his career as a commercial banker. This transaction took shape as a result of a bank merger in which this northeastern-based community bank was purchased by a larger northeastern-based regional bank. The larger acquiring bank in turn instructed the smaller bank that held the loan to exit the Conn. marketplace. As such, this bank decided to offer the borrower a steep discount to the principal to pay off their loan within a very short time frame.
Since time was of the essence to close this transaction, the borrower took advantage of WAC’s and Stormfield’s private capital to close the new loan within 10 days from the day that the borrower finalized their agreement with the bank.
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