Case Real Estate Capital Finalizes the Purchase of Industrial Site

On Oct 7, 2014

Case Real Estate Capital, LLC (Case), a Rochelle Park-based private direct investor and lender, has finalized the purchase of an $11.25 million senior note on assets in the Hunts Point section of Bronx, N.Y.  The transaction involved a five-building, 105,560-square-foot industrial portfolio on approximately 3.5 acres.

“We plan to secure a favorable note resolution for Case and its partner,” said Sandy Herrick, managing principal, who founded Case in early 2013 as a middle-market situational lending platform. Steadily expanding to meet the needs of its clients, Case has begun purchasing performing, sub- and non-performing real estate-secured notes, judgments and liens, as well as vacant and REO properties.

The Hunts Point submarket, a key import/export logistics node within New York City, has a vacancy rate of 2 percent or less. The region is home to the Hunts Point Market, the largest food distribution center in the world. Its primary tenants are the Hunts Point Terminal Market, which has fresh produce delivered daily from around the globe; the Hunts Point Cooperative Market, which consists of more than 50 companies that process and distribute meat and meat products; and the New Fulton Fish Market, which relocated in 2005 from Lower Manhattan to a new $85 million complex in Hunts Point.

“Hunts Point will continue to see robust demand for warehouse/industrial space, particularly as other industrial sites around New York are demolished or repositioned into alternative land uses,” said Jon Leifer, director-acquisitions of Case. “This note purchase marks our second deal with this note seller, a hedge fund with a strong track record of achieving defaulted note resolutions, for a well-located industrial asset in the New York/New Jersey submarket. Looking ahead, we anticipate similar acquisition opportunities in the near future.”

In addition to this latest note purchase, Case purchased a $5.4 million senior note on a 100,000-square-foot industrial building in the strong Meadowlands and port submarkets in Kearny. Situated on more than five acres, the building includes a large truck court, loading entryways and excess truck parking. “Both the Bronx and Kearny transactions fall perfectly within Case’s expertise to acquire and resolve non-performing loan situations,” said Leifer.

Case offers dependable financing solutions for all asset types as well as other short-term financing needs borrowers require. These include traditional and short-term bridge loans, discounted pay-off (DPO) financing, construction financing and first- and second-mortgage financing.

At Case, each debt and property acquisition or loan is evaluated on its own merits, based on the seller’s or borrower’s unique situation, local market conditions and the broad experience of Case’s in-house investment and origination professionals. The company also offers opportunities for local entrepreneurs. Case’s investor base is extremely diverse, including individuals, family offices and institutional investors.

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