UCASU - UC Asset offers pandemic mortgage option for commercial property owners
July 22 2020 - 2:45PM
InvestorsHub NewsWire
July 22, 2020 -- InvestorsHub NewsWire -- via By Martel Sharpe | The Atlanta
Voice
Atlanta-based real estate investment company announced that it
is offering a pandemic mortgage debt relief program for businesses
experiencing financial emergencies due to the COVID-19
pandemic.
“Partnering with distressed property owners is a bold move for a
relatively young company,” said Greg Bankston, managing partner of
UC Asset’s GP. “It can be a risky offering if the pandemic will
lead to a longer recession that lasts for years.”
“We believe the recession caused by COVID-19 will be sharp but
short. In 12 to 24 months it will be over. The value of these
properties will regain, and the cash inflow will recover. The
investment we are making today will not only provide relief to
local business and property owners for now, but also yield great
return for our investors in the near future.”
Commercial property owners who have issues keeping up with their
mortgage payments may participate in the mortgage partnership and
have their monthly mortgage obligations transferred to UC
Asset.
This opportunity is specifically offered to commercial property
owners in the metro Atlanta area, who have outstanding mortgage
balance between $500 thousand to $5 million, and whose property
income has been impacted by the COVID-19 pandemic.
Under a mortgage partnership, UC Asset will become the
commercial property owner’s business partner and will take over all
mortgage payments on the concerned property (including any past-due
payments).
In return, UC Asset will be entitled to receive a fair share of
the future income generated from the concerned property. The terms
and conditions are flexible, and may generally be more favorable to
property owners than other options such as “hard money” loans.
“UC Asset can leverage all its cash to buy in properties, which
is especially advantageous in distressed times when cash is king,”
said Larry Wu, UC Asset founder. “This is a critical part of our
strategy to stay ahead of the curve.”
“Last month we liquidated two residential properties before the
residential property price responded to the pandemic crisis. Our
cash position is robust after that move. Now we are entering into
the commercial property market, where the property price had taken
a much harder hit, and we are ready to write checks. Furthermore,
we are in negotiations of raising more capital from high-net-worth
investors, and hopefully, we will close some deals soon.”
Commercial properties are taking a huge hit in metro Atlanta
area. According to a report released April 20 by Atlanta consulting
firm Bleakly Advisory Group, the coronavirus pandemic may push
retail vacancy across metro Atlanta to at least 40 percent,
creating an unprecedented challenge for mall owners and other
landlords.
Socially-driven businesses, such as restaurants, lounges and
clubs, also have experienced a record-breaking economic loss.
A property owner half-way through their mortgage loan could face
a dilemma if the property cannot generate enough cash flow to
remain current on their payments. Many loan companies are offering
a grace period, but that may not be enough to save some
businesses.
An owner may have to liquidate the property to cover the
mortgage, which at the current market situation may result in
him/her losing the majority, even all, of his/her equity in the
property. It is very possible that the owner will end up in
debt.
“COVID-19 has hit Atlanta’s small businesses hard and financial
analysts are saying things will get even harder over the upcoming
months,” said Christal Jordan, UC Asset’s investor relations
director. “I know numerous business owners that have taken huge
hits because of the restraints placed on social gatherings. Our
firm is relatively new to the Atlanta area but we want to do our
part in strengthening the economy of Atlanta.”
Jordan continued, “Small business owners are the heartbeat of
this economy and if we can partner with commercial business owners
in peril to prevent them from having to sell their business then
we’ve done a good thing.”
Source: https://www.theatlantavoice.com/articles/uc-asset-offers-pandemic-mortgage-option-for-commercial-property-owners/
SOURCE: By Martel Sharpe | The Atlanta
Voice
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