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TAUNTON, MA-SilverLeaf Financial is purchasing two loans, which total $3 million, and will renegotiate the payment with the borrowers. The loans come from United Commerical Bank and are based off two properties, one here and one in Wooster, MA. The company is looking to turn a positive out of a negative.

The $2.3-million loan is for 437 Whittenton, here, a 452,000-square-foot office/industrial building. Sitting on 40 acres of property, the loan was purchased at a discounted rate, along with the other loan which came in at $700,000 for the 40,000-square-foot 115 Dewey St.

CEO of SilverLeaf, Shane Baldwin, explained that the company had purchased the loans at a discount, somewhere over $1 million for both loans. Baldwin tells GlobeSt.com that, for example, the $2.3 million loan can be brought to the borrower and renegotiated to between $1.26 million and $1.9 million and SilverLeaf still makes a profit. The banks, meanwhile consider these loans “subperforming,” according to Baldwin. The combination, essentially, is win-win-win, where the banks gain much-needed liquidity, SilverLeaf turns a profit and the borrowers can pay off a lower principal.

SilverLeaf also purchased a 42,000-square-foot medical office/condo building in Torrance, CA–25550 Hawthorne Blvd. The purchase was from Marathon Structured Finance Fund, which had been selected for PPIP, but needed $500 million of liquidity in order to participate. This sale was an effort to secure that liquidity.

The MOB/condo property was selling for $550 per square foot at its peak two years ago, but the units will be sold individually by SilverLeaf at a discount, although Baldwin says that they will try not to knock too much off the price as the property, at a “fire sale price,” is roughly $10 million, he estimates.

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