Younan Acquires Mezzanine Debt Portfolio

Younan, commenting on the deal with Rubicon Capital, says that Younan Finance is "continuing our aggressive acquisition activities" to add to the firm's existing portfolio of securities. He says that the company will continue to purchase stabilized, performing notes that are backed by assets in key markets.

Most of the assets that back the new Younan acquisition operate at 100% occupancy with a stable tenant base that includes federal government agencies and Fortune 100 companies. This will ensure "immediate, positive cash flow," Younan adds.

Younan formed its Finance Group in April this year to acquire a broad range of debt and debt-related securities and instruments backed by commercial real estate. The group initially plans to invest up to $200 million in performing and underperforming office loans throughout the country in transactions ranging from $5 million to $100 million.

Although the initial plan for Younan Finance called for investing in both performing and nonperforming loans, Younan told GlobeSt.com in an interview earlier this year that the company has so many opportunities to invest in performing loans that it may well be able to place the entire $200 million without turning to nonperforming loans. In connection with this latest debt acquisition, Younan observes that, "Despite the substantive challenges in the credit markets, we continue to be presented with attractive investment opportunities."

Younan acquired its first loan in the spring of this year, a $22.9-million mezzanine note on the 1.4-million-sf Thanksgiving Tower in Dallas. In May the company signed a contract to acquire a B note that is part of a first mortgage for a 290,820-sf class A office building and a 42,685-sf 24-Hour Fitness club at a property called Orange Tower in Orange County.