Worth Avenue Capital, LLC closed a $135,000 commercial loan for a Mexican restaurant operation that currently has five separate restaurants in Conn., Mass., Rhode Island, and N.Y. The loan proceeds will be used for working capital purposes and the loan was funded by one of WAC's private lenders.
In general, it is very difficult for a restaurant operation to obtain conventional bank financing. This particular restaurant enterprise was no exception.
WAC recognized the solid cash flow that the five restaurants generate on an annual basis that will enable the borrower to service the debt on the new loan in a sufficient manner. In addition, the borrower pledged a blanket first mortgage on three investment properties that they own in Springfield, Mass. that produce additional rental income.
As a result of the new $800 million casino that is being constructed in Springfield, Mass. by MGM and is scheduled to open in 2016, the city will experience a renaissance and will be the beneficiary of thousands of newly created jobs that will add approximately $30 million annually to the city's tax base. Subsequently, real estate values in that city should begin to increase once the new casino is open for business.