$1.04M Note Purchase and Workout: Covina Owner-Occupied Retail
Covina, CA: A furniture store owner was behind on the mortgage on his own building. Helvetica bought the first-mortgage note in 2013 and reworked the terms instead of foreclosing. He kept his store, and his payments came current.
The Borrower's Problem
The owner runs a furniture store in the building he owns. By mid-2013 he had fallen behind on his first mortgage, and foreclosure would have cost him both the property and his business location.
The Helvetica Solution
In June 2013, Helvetica bought the $1.04 million first-mortgage note from the original lender. The building was worth about $2.5 million, a 42% LTV.
Rather than foreclose, the new note holder revised the loan terms so the payments fit the business. The loan stayed fixed-rate and fully amortizing.
Benefit to the Borrower
- Foreclosure avoided; the owner kept his building and store
- Revised terms he could meet
- Payments current as of July 2018
- A clear path to owning the building free and clear
Deal Highlights
- $1,040,000 first-mortgage note bought from the original lender
- 42% LTV against a $2.5 million market value
- By July 2018, the remaining balance was under 15% of the property's value
- Covina sits about 22 miles east of downtown Los Angeles, with about 80,000 residents
- Exit: full payoff at maturity, scheduled for October 1, 2020
Behind on a loan and facing foreclosure?
Helvetica funds bridge and structured loans from $300K–$10M+, typically closing in 3–10 days following receipt of all requested documentation.
