The two-year loan was funded through a national bank and consisted of an "A" piece in the amount of $17.5 million and a "B" piece in the amount of $2 million. The property has recently emerged from a three-year bankruptcy after failing to achieve the necessary rents to support its $30-million development cost. At the time of the closing, the property was 83% occupied.

According to Henderson, the property's history and its recent emergence from bankruptcy made financing "an uphill battle for the borrowers." But he says that new management, an aggressive lease-up plan, a significant reduction in expenses moving forward, and the ability of the sponsors to execute the business plan convinced the lenders to go ahead with the deal. "In the end," he notes, "the transaction closed about 60 days from the time the bankruptcy court approved the transfer of the property to our client."