When everyone else turned them down, Capella Commercial Mortgage took on a convoluted commercial loan scenario with less than 48 hours until the borrower lost everything he had worked for. Wednesday afternoon at 5:00 p.m., after another lender had quoted a very expensive loan, we said we would give it a shot and we quoted less than everyone else. Bottom line – IF the borrower did not deposit $3M into an escrow account by Friday at noon – less than 36 hours away, his other deal of $16M at 3.8% interest would fall apart. Not only did the money have to be there by Friday noon, BUT, they had already $3.7M loan was being done with an escrow that was already open at a different escrow company, so we had to wire in, close, and then have the funds wired out to the other escrow by Friday noon. We called a number of attorneys, and everyone of them turned us down flat, except our attorney, Nathaniel Dodson, who volunteered to cancel vacations and other plans in order to pull this off.
From that moment, we all worked around the clock to analyze and structure the deal – which consisted of 17 pieces of collateral and membership interests – the largest of which our primary borrower didn’t even own. To make things worse, each piece of collateral was owned by an entity, which was then owned by another entity, which was then the manager of the membership interests, etc. You get the picture. Under a normal timeframe of one month, this would have been a hellacious loan to close, and we had literally hours to figure it out. Matthew and I got two hours of sleep that night, before we picked up our investor at 6 am at the airport. While they toured the properties, I worked on loan documents and structure with the attorneys (who also worked the entire night). By the time everyone got back to my office, we were ready to start reviewing documents. Because the entity structure was so convoluted, it took us the entire night (2 more hours of sleep) and until noon the next day to get everything perfected. Our loan of $3.7M closed, escrow wired over to the other escrow company, and they closed with one minute left on the clock. No exaggeration!