Irvine, California (PRWEB) January 08, 2012
ACG Companies and its family of funds (ACG) has successfully closed on a bridge loan that allowed the owner (Raj Kumar) of this hotel situated on the gateway to Yosemite national park the opportunity to buy down his debt to the bank from $1,450,000.00 to only $595K. The bank had the need to get this loan off their books and offered a significant discount if done by end of the year. The borrower realized more than a 50% discount of his debt which makes for a great year.
The day before thanksgiving we were engaged to help a small business owner cut his overhead by more than half. We flew out to the property the Friday after thanksgiving and began the underwriting process and negotiation with the bank to help the borrower take advantage of this opportunity. With as many moving parts associated with a bank note like this which had a USDA guarantee, it wasn't easy getting everyone on the same page and close by the end of the year, but on December 29th the transaction was closed. "DPO's (Discount Proposal offering) like this one are becoming more common. Bank's are finally realizing that it makes more sense to a hair-cut and get the loans off their books than having the loan go into default and ending up with the property. We have had a lot of success in allowing borrowers to use our equity to achieve discounts such as this one. Although ACG's minimum loan size is $3Million and up to $75Million, we saw this as a great opportunity to do well by doing good... and of course it wasn't too far from our backyard," said Paul A. Garcia, Managing Partner of ACG Companies.
Mr., Raj Kumar has been in the hospitality industry for over thirty years and has owned more than fifteen hotels. He understands that when an opportunity such as this comes around, you have to be able to take advantage of it and execute promptly. "ACG was able to help me take our net operating income up significantly while reducing our long term contingent liability by half. it turned out to be a great 2011 after all," said, Mr. Kumar.
ABOUT ACER CAPITAL GROUP
Acer Capital Group ("ACG") is a global holding company of Private Equity, foreign and domestic Funds in the business of deploying capital. Our Family of Funds have earned the reputation as a premier value added provider of capital. Our track record as an owner, lender and/or investor of real estate and securities has allowed us to create an unrivaled reputation for underwriting and understanding even the most complex of transactions.
The firm is headquartered in Irvine, California and maintains offices throughout the US and internationally. ACG, in its principal and advising banking and investing capacity, focuses on providing financing for transactions in a wide range of corporate and real estate projects of all types, Including but not limited to, retail, entertainment, multi-family, industrial, office, hospitality, land, mobile home and mixed-use.
Services include originating, evaluating, and structuring the transaction; preparing and underwriting the financing request package; assistance with negotiations and coordination of placement and closing process. Our track record of completed transactions speaks volumes in our ability to execute and deliver competitive and innovative debt, mezzanine and equity capital.
For more information, contact Pat Thomas at 949-484-4404 or email: pthomas(at)acgcomanies(dot)com.
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