KSI Capital Helps Miami-Based Mixed-Use Facility Weather a Tough Market with Much-Needed $15 Million Loan
Paramus, New Jersey, January 10, 2008 — Dominion Towers, LLC was facing a crisis. It was a predicament that involved two distinct elements. The first was the current state of the market which was, and continues to be, glum. And the second involved, oddly enough, the weather – or, to be more precise, the weather in Florida.
Dominion owns a 21-story mixed-use facility in Miami consisting of office space as well as apartment units in over 202,000 square feet of rentable space. The apartments have been renovated recently, and include fully equipped kitchens and a host of amenities, including balconies in many units. There is also a 7-story parking garage with 880 parking spaces and over 19,000 square feet of retail space. All in all, the property was attractive and located in an expanding, popular market with an upward growth trend. The only problem was that Dominion needed a loan to restructure some debt, and was having a difficult time finding one.
The crux of the matter was the sluggish market coupled with the fact that Miami is vulnerable to hurricanes and tropical storms. This makes securing wind insurance a costly endeavor, even when someone is willing to offer coverage – and no one was. So the building wasn’t hurricane uninsured. As if that weren’t problem enough, Dominion needed to use part of the loan proceeds to cover an impending balloon payment which was due very soon … and the loan was nowhere in sight.
All things considered, it was a fortunate occurrence when Dominion discovered KSI Capital.
KSI Capital, a direct private lender located in Paramus, New Jersey, was the perfect destination at the end of Dominion’s search for a viable loan. Since 1986, KSI has been providing borrowers with answers instead of run-arounds. Even in the midst of a depressed market, while the traditional lending industry has been closing its doors, KSI has been closing loans, and closing them steadily. Unlike those conventional bastions, KSI prides themselves on being able to solve even the most problematic of deals, and to do so in a more-than-reasonable amount of time. So it was in everyone’s best interests that KSI and Dominion began negotiations.
Said KSI Founder and President Henry Haskell, “Dominion was in a tough situation. Florida can be a difficult market even in the best of times, and I think we can all agree that today’s market is many times more challenging. On the plus side, we have dealt extensively in Florida and are well aware of that state’s specific requirements and peculiarities. Also, the apartment industry there is still growing steadily, thanks to a major increase in tourism and immigration from Latin America. And the entire neighborhood itself is currently in a revitalization mode, with several condominium projects in the planning stages, and a number of properties being renovated. Our due diligence showed us the property’s promise, and we were glad to be able to close on Dominion’s $15 million loan.” Haskell paused, then smiled and added, “We also waived the wind/hurricane insurance requirement, which most companies in Florida do who are ‘in the know.’ And I’m sure that also made Dominion happy.”
According to KSI Vice President Daniel Haskell, the loan was a very good one. “We found that the Miami apartment market continues to be one of the most stable and attractive markets in South Florida. The area is still a growing economic magnet, the population is increasing, and there is a demand for all types of housing within the marketplace, not to mention a need for office space. And Dominion is situated right near the Jackson Memorial Hospital complex, in major employment areas, with easy access to major thoroughfares. The property can only increase in value over time.”
Dominion Towers was also quite pleased with the outcome. Debi Russ, a spokesman for Dominion, said, “Finding KSI was like a breath of fresh air. Our search for a loan was essentially stalled, and we needed cash for restructuring, for the balloon payment, insurance, the whole nine yards. Henry and Daniel were unrelenting in their efforts to make the deal happen, and everyone at KSI did a superb job. We would have no hesitation in working together again in the future.”
KSI Capital Corporation’s ability to make loans with speed, honesty, integrity, and professionalism attracts a broad range of borrowers from across the country and abroad. As a company with extensive experience in both the lending and real estate industries, KSI specializes in the unique and/or unconventional loan, paying particular attention to the specific needs and circumstances of the borrower. KSI uses generous loan-to-value ratios—up to 70%—and can issue a loan commitment and close in a matter of days. Funds are typically requested for commercial property acquisition and refinancing, development and construction, bank workouts, bankruptcies and foreclosures. Loan terms range from 1 to 5 years.