When Your Bank Changes Course Mid-Stream

A seasoned retail investor in New Jersey faced every CRE professional's nightmare: their longtime banking partner suddenly refused to refinance two performing Dollar General properties due to a corporate merger and new leadership's aversion to retail assets.

The portfolio was rock-solid:

• Two fully-leased Dollar General stores in prime New Jersey locations
• Strong cash flow from triple-net leases through 2034
• Credit tenant with 20-year renewal options

Despite the strong fundamentals and proven cash flow, the investor found themselves in maturity default through no fault of their own. Traditional lenders saw complications where they should have seen opportunity.

The challenge wasn't the asset quality—it was institutional inflexibility:

• Bank merger aftermath: New leadership eliminated retail appetite overnight
• High leverage concerns: 74% LTV spooked traditional underwriters
• Time pressure: Maturity default required immediate action
• Committee constraints: Banks needed weeks for decisions the market couldn't wait for

While other lenders focused on what was wrong, we saw what was right: two stabilized properties with reliable cash flow and a clear exit strategy.

Mission accomplished in 60 days:

• Cured the maturity default immediately
• Maintained borrower reputation and relationships
• Preserved strategic control over exit timing
• Achieved planned sale of Wantage property for $1.54M
• Reduced remaining LTV to 62% on Forked River property
• Positioned for long-term refinance with traditional lender

Bank mergers, policy shifts, and changing institutional appetites shouldn't dictate your real estate strategy. When you have quality assets and clear business plans, you deserve financing that works with your timeline—not against it.

Ready to discuss your challenging deals? Whether you're facing similar timing pressures or want to establish a relationship before you need it, Spectra Lending specializes in situations where traditional lenders fall short.