Iron Hound Completes Three-Year MF Workout
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The Iron Hound team spent more than three years crafting the restructuring, says Verrone.
NEW YORK CITY—Iron Hound Management Co. has completed a $317-million loan restructuring on a 56-property multifamily portfolio acquired out of special servicing by the Chetrit Group. The loan workout took more than three years to complete.
Backed by 5,400 apartments across Florida, Indiana, Kentucky, Ohio and Pennsylvania, the loan was originated at $335 million by Merrill Lynch in 2007. The Commercial Observer reported last week that the loan was part of the $2.77-billion MLCFC 2007-8 conduit deal, and was turned over to special servicer LNR Partners in 2010 for imminent default.
The three-year restructuring proceeded with a number of milestones along the way. First, Iron Hound principal Robert Verrone and his team restructured the loan into two components: a $205-million A-piece, and a $112-million B-piece, incorporating a 12-month maturity extension. Next, Iron Hound arranged an assumption from original borrower Empire American Holdings LLC to the Chetrit Group. Iron Hound was also able to extinguish the loan’s preferred equity piece, owned by Arbor Commercial Mortgage…
