Iron Hound Restructures Debt on 634K Bldg.

LOUISVILLE—Iron Hound Management Company, LLC, a real estate adviser which specializes in commercial loan restructuring, has just restructured the $9.5 million mezzanine debt on the AEGON Center at 400 W. Market St. in Louisville, on behalf of sponsors Mark Karasick and Victor Gerstein, according to Robert Verrone, a principal of Iron Hound. The modification will subordinate a portion of the debt to the sponsor's new equity, extend the loan term and reduce the interest rate on the loan.

The 633,650-square-foot, 35-story class A office building is the tallest in Kentucky and was designed by noted architects John Burgee and Phillip Johnson. Mercer, Invesco and the law firms of Frost Brown Todd LLC and Stites & Harbison, PLLC, rent out space at the center. It is just the latest iconic Midwestern tower Iron Hound has had a hand in restructuring. In October, GlobeSt.com reported that the firm had negotiated and restructured a $45-million securitized loan on behalf of New York-based Amerimar on 101 West Ohio Street, a 22-story, 338,000-square-foot, class A office tower in downtown Indianapolis.

“Iron Hound's expertise and guidance was invaluable in helping us restructure the mezzanine debt on 400 W. Market Street,” says Mark Karasick, president of 601W Companies. “Our relationship with the special servicers allowed us to coordinate and negotiate this successful modification,” said Verrone.

Founded in early 2009, Iron Hound has since completed nearly $10 billion in transactions and is actively engaged on over 30 assignments totaling more than $2 billion. The firm recently expanded its reach on the brokerage side to include loan debt and equity placement, and was an adviser on a 2011 loan assumption for Louisville's PNC Corporate Plaza.