Marathon Asset Management originates $24 million senior mortgage

According to Marathon Asset Management, L.P., a leading investment manager whose core focus is credit investing, it has acquired two commercial real estate investments that emanate from its debt operations. The investments are a part of the firm's continued focus on real estate-related debt opportunities that capitalize on the ongoing dislocation and distress in the U.S. commercial real estate debt markets. Marathon recently originated a $24 million senior mortgage secured by a 386-room, 13-story full service hotel. Proceeds of the loan were used to effectuate a discounted pay-off of the existing senior mortgage from a third-party lender. Scott Schwartz, co-head of Marathon Real Estate, said, "the hotel borrower had the opportunity to take advantage of an attractive, discounted pay-off opportunity, but needed to obtain the required funds in less than a month. By working with the borrower to reliably structure and execute loans under tight time constraints in a manner that fit its needs, Marathon provided a new money lending solution that was accretive for this borrower." Marathon also acquired a defaulted note, sourced directly from a regional U.S. commercial bank, collateralized by a St. Petersburg, Florida, residential condominium/rental project. As a result of the purchase, Marathon expects to negotiate a settlement with the borrower or otherwise assume control of the project. "This investment demonstrates our team's capabilities and experience to underwrite and invest in transitional real estate and to acquire outstanding debt in a manner that solves a problem for an existing lender and affords an opportunity to effectuate a restructuring that over time should provide a unique opportunity for our investors. It is consistent with our strategy of working with lenders to acquire non-performing distressed debt on high-quality real estate located in major metropolitan areas," said Ron Bernstein, co-Head of Marathon Real Estate. Founded in 1998, Marathon Asset Management is a credit focused asset management company with approximately $11 billion of assets under management. Headquartered in New York City with international offices in London and Singapore, Marathon employs approximately 130 professionals. Marathon is a Registered Investment Adviser with the Securities and Exchange Commission.