Transaction Summary
The Property
The Closter Plaza Shopping Center was a 210,000 sq. ft. community shopping center anchored by Kmart and by a vacant Stop & Shop. The property historically generated over $500,000 in free cash flow. The owner undertook a poorly devised redevelopment plan. The property defaulted on $700,000 in real estate taxes.
The Situation
The shopping center filed for Chapter 11 bankruptcy. The mortgage encumbering the shopping center, with a principal balance exceeding $14.1 million, was sold to loan-to-own investor.
The Transaction
The debtor engaged Keen to develop and implement a plan for raising capital and exiting Chapter 11. The debtor’s transactional goals were to:
- Avoid sale and capital gains impact
- Create j-v to fund plan and redevelop shopping center
- Provide debtors with income stream
- Provide debtors with equity kicker
Keen successfully solicited multiple j-v proposals and negotiated and structured a $52 million joint venture with Edens & Avant that accomplished all of the debtor’s goals.
Reference
Daniel Stolz, Esq. (Wasserman Jurista & Stolz), debtor’s counsel:
T: (973) 467-2700 x.202, dstolz@wjslaw.com
