NEW YORK--(BUSINESS WIRE)--Northlight Financial LLC (“Northlight”), a manager of private equity debt investments and real estate assets, today announced the completion of a $28.5 million exit financing to Specialty Trust Inc. (“Specialty Trust”), a Reno Nevada based privately held REIT that holds REO properties and mortgage loans secured by properties primarily in Nevada, Arizona and California. The exit financing was provided by funds managed by Northlight.
Specialty Trust filed for Chapter 11 protection in U.S. Bankruptcy Court in Reno in April, 2010. In December 2010, the Court approved Northlight’s Debtor-in-Possession financing and on June 3, 2011, the Court approved the Plan of Reorganization. Pursuant to the Plan, Northlight’s real estate group was designated replacement manager and loan servicer.
The Specialty Trust portfolio includes more than 30 REO and mortgage assets. Core assets include loans on properties in Sedona Arizona, La Quinta California and Las Vegas Nevada.
“We see substantial value in the assets of Specialty Trust and the loan we made on behalf of our investors,” said Ben Gerig, Chief Investment Officer of Northlight’s real estate group. Mr. Gerig went on to say, “Property value drivers will be the execution of our disciplined resolution plan and targeted application of fresh capital.”
About Northlight
Northlight is an established corporate lender and asset-based investor that currently manages over $500 million in corporate loans, real estate loans and related assets. Mr. Gerig and his real estate team manage the firm’s real estate group which currently manages over $300 million in commercial real estate loans and real estate assets with the addition of the Specialty Trust portfolio.
Northlight was founded in November 2002 by Michael Jahrmarkt, Robert Woods and Mark Hirschhorn and has been a Registered Investment Advisor since 2006. Senior professionals at Northlight have originated or acquired more than $7 billion of credit-related assets over their careers and the Northlight founders have partnered since 1985 as primary management of significant business units at GE Capital, Heller Financial and Gilman Investment Company.