Acquisition of a Luxury Estate in Old Brookville, NY
Paradigm Capital, a nation-wide, private, commercial real estate bridge lending firm, is pleased to announce that it has funded a $2,000,000.00 loan, to fund the acquisition of a 3.11 acre estate improved with a 7,500 SF luxury SFH, 800 SF pool house, basketball/tennis court, and a par-3 golf hole in Old Brookville, NY. The transaction is structured as a sale-leaseback, wherein the current owner of the Property has sold the estate to Paradigm and executed a 12 month lease with a buyback option. Our Borrower purchased the first mortgage on the Property, which was in foreclosure, at a discount and has been working to resolve the foreclosure and in a separate transaction they purchased the deed to the Property. Through this transaction, Paradigm will be taking on the existing first mortgage, the deed, and foreclosure action by assignment and will be completing the foreclosure proceedings which will clean up any and all liens against the Property.
David Kushner, the President of Paradigm Credit Corporation offered this about the transaction, “Our Borrower had an immediate need for capital but due to the existing foreclosure action could not simply secure financing from Paradigm through our typical lending means. We saw the value in this Property and were able to get creative and structure a transaction which met our Borrower’s needs and will allow us to take over and control the process of clearing the foreclosure. Paradigm’s acquisition represents 46% of the Property’s underwritten value and we were able to close this transaction within 21 business days from origination.”