ReCap Secures $3.4 million loan for one of the oldest SRO Hotel in New York City

NEW YORK - Nov. 15, 2013 - PRLog -- Real Estate Capital of America (ReCap) recently secured a $3.4 million loan for Riverside Tower Hotel in New York City – it is one of the oldest and few reminding SRO (single room occupancy) hotel left in New York City. The financing enables the client to refinance his previous private note mortgage and provides funding for renovation and upgrade of the hotel.

Johnny Su, COO of ReCap, stated that, “this is one of the few dinosaurs like building left in the New York City. Most of the SRO hotels have been torn down or converted for other uses. Therefore, its unique use became a very difficult issue in the loan placement process and does not fit any lending category for most banks.” Su added, “The building really is a dinosaur even for commercial real estate lending field and this is the first SRO hotel I have financed or heard of being financed in over a decade.”

Su further noted that what makes this property even more challenging to secure finance is that the owner was 85 years old, self-managed the hotel, has no franchise brand or affiliation, and no audited financial or occupancy records. In addition, given his age, we could not convince the insurance company to write a key man insurance policy for the loan.

Stephen Penn of Penn, Proefriedt, Schwarzfeld & Schwartz, a New York law firm that specialized in commercial real estate law, and has over 30 years of experience in law practice, represented the client and picked ReCap for this refinance assignment over several competing brokers. Stephen in the interview for this article stated that, “Johnny (COO of ReCap) is one of the best commercial finance professionals I have ever worked with in my over 30 years of law practice. He is honest, hardworking and, most of all, never overpromise and always deliver. That’s how business and finance should be! My client and I don’t have time for sale pitches from financing brokers that promise you everything in the world just to get your business and then bait and switch the deal or just can’t secure any financing at all.”

Su, added, “I am very honored to have the attorney and the client’s trust to take on this assignment and to be able to help them secure the necessary financing to keep this legacy hotel operating for many more years to come. Being able to bring and secure the financing for my clients to help them prosper and grow is what motivates me to take every deal to the finish line.”

Tomer Dicturel, CEO of ReCap, noted, “ReCap continues to thrive in this difficult market and through our strong relationships with our lenders and capital market, we have continually to deliver and secure the necessary financing to help our client grow and expand.”