For the second time in two months First Market Properties (FMP) has negotiated a major deal to acquire distressed real estate debt. This time for notes worth $20.5 million from a recognized lending institution.
According to Aaron Kurlansky, head of South Florida acquisitions, FMP stepped in with their all-cash offer after the original buyer at auction was unable to close. “Using our experience and expertise we pulled out all the stops to make the deal happen” said Kurlansky, a veteran financial analyst and mortgage banker. “We were able to close in only 10 days.”
First Market Properties, which has carved out an industry niche in acquiring discounted, non-performing loans, bought 25 multi-family properties with a total of 350 units. The properties with five to 50 units each, are located in neighborhoods between Fort Lauderdale, Broward County and Lake Worth in Palm Beach County, areas hard hit by the fall-out from the peak real estate market of 2006-2007.
According to Kurlansky, the loans bought run anywhere from $300,000 to $3 million and the borrowers are mostly smaller local investors.
“First Market Properties is expert at evaluating collateral, closing quickly and working to maximize the value of assets,” added Kurlansky. “We have the ability to keep the properties, manage them and turn them around or sell them. “We are seeing people bullish on multi-family properties for long-term investment.”
First Market Properties of New York and Florida, headed by David Brecher, is a full service real estate sales and asset management investment company specializing in buying non-performing residential and commercial debt and disposing of bank-owned real estate.