Marathon Acquires Two CRE Investments

on Asset Management LP has acquired two commercial real estate investments that emanate from its debt operations. The investments are a part of the firm's continued focus on real-estate-related debt opportunities that capitalize on the ongoing dislocation and distress in the U.S. commercial real estate debt markets. Marathon acquired a defaulted note, sourced directly from a regional U.S. commercial bank, collateralized by a St. Petersburg, Fla., residential condominium/rental project. As a result of the purchase, Marathon expects to negotiate a settlement with the borrower or otherwise assume control of the project. Marathon also recently originated a $24 million senior mortgage secured by a 386-room, 13-story, full-service hotel in New York. Proceeds of the loan were used to effectuate a discounted payoff of the existing senior mortgage from a third-party lender. ‘The hotel borrower had the opportunity to take advantage of an attractive, discounted payoff opportunity, but needed to obtain the required funds in less than a month,’ explains Scott Schwartz, co-head of Marathon Real Estate. ‘By working with the borrower to reliably structure and execute loans under tight time constraints in a manner that fit its needs, Marathon provided a new money lending solution that was accretive for this borrower." SOURCE: [link=]Marathon Asset Management LP


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