“The borrower in this transaction needed a reliable lender that would provide acquisition financing secured by a completely vacant office building along with future funds allocated towards renovation, tenant improvements and leasing commissions."
Red Bank, NJ (PRWEB) April 25, 2017
Knighthead Funding, LLC (“Knighthead”), the Greenwich, CT-based real estate finance company, announced that it has provided a $5.4 Million first mortgage acquisition and rehab loan secured by a three-story office building in downtown Red Bank, NJ containing approximately 25,000 square feet.
The property, formerly known as the Smith Barney Building, is located at 55 Broad Street and was originally built in 1914 for First National Bank. In 1998, this landmark building was completely renovated to accommodate Smith Barney, which occupied the entire building. Broad Street is a main commercial thoroughfare that houses many upscale boutique shops and restaurants, a landmark theatre, nightclubs and neighborhood conveniences.
The borrower is an affiliate of Saxum Real Estate, headed by Managing Principal Anthony Rinaldi. Saxum is a New Jersey-based real estate investment and development firm that has successfully completed other prime “downtown” boutique office repositionings throughout New Jersey.
The Knighthead loan was structured with a 30-month term, a LIBOR-based floating interest rate, and interest only payments. Commenting on the challenges of financing this project, Jonathan Daniel, Principal at Knighthead, said, “The borrower in this transaction needed a reliable lender that would provide acquisition financing secured by a completely vacant office building along with future funds allocated towards renovation, tenant improvements and leasing commissions."
Mr. Daniel added, “Mr. Rinaldi has a real niche for creating Class A office space in highly desirable locations with build-outs catering to today’s office layouts, designs and overall needs. We are thrilled to be able to provide financing for Saxum on their newest office project.”
The property, currently being rebranded as “The Vault,” is available for lease and is being marketing directly by Saxum Real Estate.
About Knighthead Funding, LLC
Knighthead is a real estate finance company specializing in bridge loans and other alternative debt financing to meet capital needs in a variety of unique and special situations secured by a broad range of real estate assets. Since 2013, Knighthead has earned an exceptional reputation for funding complex and situational real estate transactions in a timely manner with flexibility and certainty of execution. Currently, Knighthead is originating loans and investments for its second discretionary real estate debt fund.