Commercial Loan News
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SAN FRANCISCO, CA - May, 2007
Investment Advisory Services Summary:
Steelhead Capital successfully negotiated the waiver of an additional interest expense on the pay-off of a loan to facilitate the closing of a disposition
An existing client of Steelhead Capital accepted a loan with a flexible pre-payment penalty. The loan documents required a 30 day notification period for early pay-off. The borrower failed to notify the lender and therefore was charged additional interest expense; therefore reducing sale proceeds. It was always the borrowers intent to pay the pre-payment penalty if the situation arised.
As the Buyer of the clients property was in a 1031 exchange and facing a deadline there was not sufficient time to petition the traditional channels. Steelhead Capital was informed 3 days prior to the close of the situation. Upon notification, we were able to review the existing loan documents and recommend a favorable position to support the waiver. The lender concurred with our position and waived the additional interest expense, thereby allowing for increased sale proceeds for the client. This was the last property of the clients portfolio being liquidated in order to allow the clients to retire from the business.
A Sean Aguilar, CCIM was responsible for the successful resolution and stated that "Our clients were distressed and visible disappointed at the situation they were in but were very much appreciated of our efforts to move quickly and convincingly to reach a favorable outcome. Today they are happily enjoying their retirement."
About Steelhead Capital:
Steelhead Capital is a premier provider of creative commercial loan financing for commercial real estate investors. Steelhead Capital brings an extensive network of lending sources, structured finance experience with a focus on acquisitions, and a clear commitment to personalized customer service to investors financing properties in any of the 50 states. Steelhead Capital's offices are located in San Francisco, CA. Company information can be found at www.steelheadcapital.com.
Contact Information:
Steelhead Capital, Inc
415-397-2980 (phone)
415-397-2981 (fax)