Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

7155

Marathon purchases distressed debt secured by retail centre

RELATED TOPICS​

Marathon Asset Management, a corporate, structured and real estate credit investment manager, recently closed on a new investment in its Real Estate Lending and Distressed Debt Program as a part of the firm’s continued focus on commercial real estate-related debt opportunities.

Marathon’s acquisition of the East Village Shopping Center in Roswell, GA involved the purchase of a distressed senior mortgage and simultaneous transfer of ownership through a pre-negotiated deed in lieu of foreclosure. East Village is the premier “power center” in a high-density, affluent Atlanta suburb. Built in 2008, the property includes 83,319 sq.ft. of existing retail space, plus 112,296 sq.ft of planned development for which much of the infrastructure, planning and pre-development work has been completed. East Village is shadow-anchored by a Target Corporation owned, 181,877 sq.ft. Super Target store, rounding out East Village’s approximately 377,492 sq.ft. total project size.

“In working with Marathon on this transaction, the borrower had an opportunity to resolve its legacy loan issues and take part in the future success of the property,” says Ron Bernstein, Co-Head of Marathon Real Estate. “Notwithstanding solid execution by a highly-reputable local developer, depressed market conditions resulted in an overleveraged situation. Marathon’s investment provides the needed capital to put a well-conceived project back on the right track, with a cost basis right-sized to complete the limited remaining development and leasing at today’s reset market rates.”

Marathon worked closely with the former borrower, Concordia Properties, on this transaction in order to facilitate a seamless transition. Concordia will remain the property manager and developer of East Village going forward. Synergy Resolution Services, an experienced, Atlanta-based real estate asset manager, co-invested with Marathon and will oversee on-the-ground business plan implementation. Marathon secured new mortgage financing for the East Village investment, used in part to effectuate the acquisition of the distressed loan. Additional loan proceeds are available for future development and leasing.

Scott Schwartz, Co-head of Marathon Real Estate, adds: “The East Village investment is another example of Marathon creating an opportunity out of a distressed situation by leveraging its expertise as both a lender and principal investor. The commercial real estate investments that we completed in 2010 as a part of our Real Estate Lending and Distressed Debt Program demonstrate our continued ability to identify, negotiate, structure and execute complex, off-market transactions arising from dislocation and distress in the U.S. commercial real estate debt markets.”

Latest News

Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according..
Octopus Investments (Octopus) has announced it has launched a Natural Capital Strategy...
Research firm focused on Alternative UCITS funds, Kepler Absolute Hedge, has published its Market Intelligence..

Related Articles

Trends
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100 million deals announced this month alone...
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100..
Different flavours
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led, multi-boutique global asset manager with over USD20 billion under management, recently undertook a survey with 204 UK investment professionals, seeking insights into their perceptions and attitudes towards boutique asset managers...
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led,..
UK map
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be worth billions of pounds in the coming years...
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be..
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a possible buyout of EY’s Italian consulting branch...
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by