IRVINE, CA—Cohen Financial, a national real estate capital services firm, has secured a $178.5 million loan for the acquisition of a diversified portfolio of 24 properties located in 12 states by Northstar Commercial Partners, a Denver-based, privately-held company that specializes in buying distressed CRE assets across the United States. Mark Strauss, managing director of Cohen Financial's Irvine office, and Robert Quarton secured the loan with Prime Finance Partners, a national privately-held commercial real estate finance company. The portfolio consists of 13 industrial warehouse & manufacturing facilities, eight office buildings, and three retail properties, totaling approximately six million square feet.

Cohen Financial secured the three-year term loan at an 80% loan-to-value (LTV). Cohen Financial worked closely with the Prime Finance Partners team to help the lender understand the relative value of each underlying asset in relation to its market. Many of the properties are located in secondary markets with substantial vacancy. The opportunity for the sponsor was to purchase in bulk, execute a lease up strategy, convert a low basis into increased value through their leasing expertise and sell individual assets. 

The Cohen Financial team worked diligently with Northstar Commercial Partners Founder and CEO Brian Watson to secure acquisition financing that best fit the sponsor's strategy for the assets. Commenting on Watson's determination to acquire the portfolio, Strauss said,

"Brian demonstrated exceptional persistence and fortitude. He never took his eye off the target nor allowed circumstances to diminish his steadfast belief that Northstar would acquire this portfolio irrespective of the physical or financial challenges the deal manifested," Strauss said. "Having spent more than two years working on the acquisition, Northstar is well positioned to take advantage of the portfolio's potential. The unwavering effort of the entire Northstar team contributed to the successful closing."

Strauss said Prime Finance Partner's efforts were also key.

"From the initial submission to close, Prime was focused on execution and found constructive ways to overcome all of the issues. There was never any question about the certainty of closing this complex and extremely challenging transaction," Strauss said.

Cohen Financial is a diversified, commercial real estate capital services firm offering debt and equity placement, loan administration and advisory services.