Resource Real Estate Opportunity REIT Inc., a non-traded REIT sponsored by Resource America Inc., has paid $7.1 million for a nonperforming loan against the Cannery Lofts, a 156-unit apartment property in Dayton, Ohio.
The loan has a principal balance of $14.5 million and is in default. It has not made its debt-service payments for more than 15 months.
The loan's collateral is a former industrial building at 500 East Third St. that was constructed in 1838. It was converted into apartments and renovated most recently in 2001. It includes 40,000 square feet of retail space, a fitness center, roof deck and parking.
Resource Real Estate, which was launched in July 2009, has so far raised roughly $25 million of equity from investors. It is aiming to raise up to $821 million.
The REIT purchased the loan from the Department of Housing and Urban Development. It was originated in 2004 with a balance of $14.6 million and a coupon of 5.125 percent.
It said it could negotiate a discounted pay-off, restructuring or foreclosure.
Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.
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