DRA Purchases $48M Construction Loan

SUMMIT, NJ-Locally based Diversified Realty Advisors recently purchased a $48-million nonperforming construction loan from a four-member consortium of banks. The loan, of which half of the principal balance is outstanding, is for a fully completed, mixed-use condominium building in Hudson County. DRA, which declined to give the property’s owner or location, acquired the note for cash after a brief due diligence period.

“Our strong relationships with the banking industry and strategy of targeting the loan opportunities that have arisen due to distressed market conditions has placed us in a unique position to effectively assist banks in getting these loans off their balance sheets,” DRA partner Jonathan Stein tells GlobeSt.com.

While savvy investors are now starting to scoop up poorly performing loans, many properties are still in limbo. To a large degree, the federal government’s various recovery/bailout programs have enabled lenders to delay bringing their assets to market. “Ultimately, these programs are dragging out any sort of resolution,” says David Csontos, executive managing director of FirstService William’s New Jersey office in Parsippany. “It’s almost like kicking a can down the street.”