Worth Avenue Capital completes $6.25 million debt restructuring

Guilford, CT Worth Avenue Capital, LLC has completed a $6.25 million debt restructuring for its investors on a commercial real estate asset in Connecticut. The loan proceeds were initially used to provide mezzanine financing several years ago towards the construction of a ground-up shopping center in Connecticut. Due to various factors, including COVID, the construction project stalled and a large portion of Worth Avenue Capital’s secured debt went into default.

Worth Avenue Capital (WAC) then undertook a long and arduous loan workout process with multiple parties that was completed. The loan workout exercise took close to three years to complete and all of WAC’s loans were paid off in full including all principal, past due interest at the default interest rates and legal fees on each loan. As a result of WAC’s loan workout and debt restructuring expertise, WAC was able to achieve a 44% ROI for its investors for this loan syndication investment.

WAC now has excess liquidity that it is seeking to reinvest into new commercial loan originations. Specifically, WAC will entertain loan requests for any real estate asset type from $100,000 to $7 million. Geographically, WAC will also consider loan requests in the Southern New England states, New York, New Jersey, Pennsylvania and Florida.