Iron Hound Management Company has restructured $335m of assumed debt on The Chetrit Group’s acquisition of the Empirian Portfolio Pool 2 multifamily portfolio, paying off a preferred equity slice and breaking the remainder into securitized components: a $205m A piece and a $112m B piece.
The restructuring of the CMBS loan, secured by 56 properties consisting of 5,400 apartments in Florida, Indiana, Kentucky, Ohio and Pennsylvania, includes a 12-month maturity extension on the loan, provided by Merrill Lynch in May 2007.
“We dedicated more than three years to crafting, negotiating and completing a complex restructuring plan to ensure the excellent long-term prospects for the properties and the loan,” said Iron Hound principal Robert Verrone, who arranged the deal with LNR Partners taking over as special servicer on behalf of the Merrill Lynch. “Our relationship with the special servicer enabled us to coordinate this successfully, and to craft a solution to satisfy all parties.”
Iron Hound arranged the assumption of the loan from the original borrower, New Jersey-based Empire American Holdings. The extinguished preferred equity was owned by Arbor Commercial Mortgage.
The original loan was part of the $2.77bn MLCFC 2007-8 securitization and was transferred to special servicer LNR Partners in December of 2010.
Founded in early 2009, Iron Hound Management has completed more than $15bn in transactions. A company spokesperson did not respond to requests for comment regarding the acquisition price.