24 Capital Closes on Record $27.5 Million Loan to Aurora Development

Hackensack-based direct lender 24 Capital provided these funds -- a record amount of $27.5 million in record closing time -- and the partners can now move ahead on their plans. When completed, Aurora Over theHudson will hold 131 luxurious condos -- ranging from 1,872 sq. ft. to 3,724 sq. ft. -- with two underground parking spaces per home on a 3.32 acre land tract. The developers had already leveled the few buildings that stood on the land and the tract is nearly ready for construction.

"This site is located in the state's most desirable area, often referred to asNew Jersey'sGold Coast, where despite the general slowing of the market, the pace of project sales remains strong," says Gregg Wolfer, president of 24 Capital. He points out that a nearby residential tower is almost sold out, leaving a ready market for Aurora Over theHudson.

"For this loan, the collateral's 'as is' market value easily supported the loan," Wolfer says, "and the area's proximity toNew York City and corporate centers in the tri-state area are not going to change. Considering that Aurora already has contracted with future residents, the prospects for successful development are excellent, even in the current environment."

"24 Capital felt that the risk was definitely worth taking, given the figures," Wolfer says. "It is unfortunate that the current lending climate increasingly forces reputable developers and other borrowers to face scenarios where investors abruptly cut off promised funds or traditional lenders refuse to buy into a strong vision with strong collateral, especially over the past year.

"At 24 Capital, our reputation depends on the premise that we look at each borrowing company or individual as just that -- individual. Our extensive research team pulls together all relevant information and our financial team puts together workable packages that allow projects to move forward without interruption. And that," he says, "is why we called on our resources to make this loan. In this case," he adds, "The Pinnacle Companies and notably Mr. Stolar has been building residential communities, super-upscale high-rise residences, and custom homes in suburban and urban settings for more than 20 years. Kohl Partners founded by Leonard Kohl and headed up by Alan Litt have built numerous projects for themselves and for others as a highly regarded general contractor. Their solid reputation precedes them in whatever they undertake and we are happy to have them as part of our client roster."

According to Brian M. Stolar, President and CEO of The Pinnacle Companies, "Aurora Over theHudson is a super-luxury residential project designed by internationally regarded Philippe Starck and it will be The premier building in theState of New Jersey. We needed interim funding while we complete our pre-sales and with over $40 million in sales already, 24 Capital's funding will give us the capital to complete our additional sales required for a construction loan."

Where traditional lenders continue to buy into the concept of a declining economy and shield themselves from funding borrowers, 24 Capital recognizes the value of fueling people and projects that keep the economy moving. Says Wolfer, "When we have confidence in what our borrowers present, our mission is to move quickly to back up our financial commitment."

Traditional lenders often drag out the application process for months and then disappoint borrowers with turndowns despite solid collateral. 24 Capital is known for moving confidently and able to lend up to 75% of collateral value, sometimes completing the application process within 24 hours and closing in five days. In addition to new development and construction, 24 Capital provides direct loans for the spectrum of projects, including turnarounds, bankruptcies, foreclosures, and property acquisition for clients like shopping centers, multifamily buildings, office centers, hotels, and more. www.24capital.com

SOURCE 24 Capital Corp.

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Copyright © 2008, NewsBlaze, Daily News

Tags: ,RLT,FIN,NJ-24Capital-27.5Mil

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