Great Neck-based BRT Realty Trust, which specializes in mortgage loans backed by commercial and multiunit properties, has obtained a new $25 million line of credit. BRT said it would use the money in part to expand its business.
The revolving line of credit transaction, with Capital One bank, closed Wednesday.
Jeffrey A. Gould, chief executive of BRT, said, "this new line of credit gives us additional flexibility and capital to expand our business and better serve our clients."
The line of credit matures in June 2014 and allows for the conversion, at BRT's option, into an 18-month term loan, the company said. The line of credit is secured primarily by mortgage receivables to be pledged by BRT, and the $25 million maximum availability is contingent on the collateral posted from time to time.
Earlier this month BRT entered a joint venture with an affiliate of Torchlight Investors LLC. The joint venture, known as BRTL LLC, has the right to acquire short-term commercial real estate mortgage loans, or bridge loans, originated by BRT Realty Trust.
The maximum capitalization of the joint venture is $100 million, of which the Torchlight affiliate will fund 80 percent and BRT will fund 20 percent; and BRT will manage the new entity.
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