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CARLSBAD, CA - June 11, 2012 – The Helvetica Group has announced plans to ramp up acquisition efforts of retail strip centers nationwide. Helvetica is looking to acquire value-add centers that may require stabilization efforts and leasing strategies in order to improve the financial health of the properties.
Over the next few years Helvetica is also prepared to deploy $100 million dollars in bridge financing for retail centers. Prospective borrowers will be able to utilize this financing in order to purchase value-add retail properties that are otherwise not eligible for conventional bank financing.
“With over $1.7 Trillion Dollars in CMBS notes maturing over the next five years we have yet to see the full effects of the real estate crisis on the commercial sector. Many of these CMBS loans were originated in 2007 and now have balances that greatly exceed the current values of the properties. We expect that as these loans come to maturity we will see much more bank owned inventory being released to the market. Our focus is to ramp up acquisition efforts on these properties and also act as equity partners on joint ventures,” stated Chad Mestler, CEO of Helvetica.
Many of these bank owned retail centers are unstabilized due to low occupancy. This does not mean that the centers themselves are undesirable locations for prospective retailers. Many tenants have vacated their space due to pre-2008 rental rates. As these properties go through the foreclosure to REO process the leasing efforts are often times non-existent by the lender. The result is a huge inventory of retail centers that present a unique value-add component. Since many of these properties are unsatbilized and do not qualify for conventional financing.
“We have the philosophy that we lend on the same things we like to buy. We are a direct private money lender offering financing alternatives to conservative bank lending. Our fast and creative short-term bridge financing allows borrowers to acquire value-add properties that are not eligible for conventional bank loans. Borrowers utilize our bridge financing in order to stabilize their property and refinance out of our loan, or to free up liquidity for further investment opportunities,” said Mestler.
This flexibility has allowed Helvetica to position themselves as an opportunistic investment group. The experience and knowledge of the Helvetica team has produced significant returns and will ensure the company’s future success.
About Helvetica
The Helvetica Group (helveticagroup.com) is a real estate investment bank providing innovative private lending, distressed asset acquisitions, brokerage, investment management and family office services. Helvetica is a direct lender and invests on behalf of individual investors, trusts, pension plans, retirement funds and institutional investors representing over $1 billion in combined assets. We work closely with brokers, bankers, lenders and financial advisors as strategic partners to provide clients with fast access to financing, affording them the opportunity to quickly leverage their real estate assets. The Helvetica Group and its affiliates provide alternative financing secured by a variety of property types including: residential, retail, office, apartments, storage, RV parks, mobile home parks, light industrial, mixed use and other special use properties.