Park80, Saddle Brook, NJ
In May 2015, Cygnus acquired a non-performing mortgage secured by a leasehold interest in an 83,221 sq. ft. office property located in Saddle Brook, NJ. The building was built in 1968 and had an unpaid loan balance of $5.84M. Cygnus purchased the asset for $1.65M (29% of UPB). Cygnus sold the asset in 2017 for $2.24M, following a two-year hold period, and achieved an IRR of 23.98% and a MOIC of 1.05x.
Lost Mountain, Cygnus Strategic Income Fund
Cygnus originally purchased Lost Mountain as part of a Cygnus Property Fund II acquisition of a SunTrust REO portfolio in November 2012 for $1.065M. The asset, a distressed lease secured by a 36,056 sq. ft. retail and office property, was subsequently transferred into Strategic Income Fund in September of 2016. During the 4-year hold period, Cygnus increased occupancy from 12% to 82%, leading to positive cash flow. Cygnus sold the stabilized asset to a local investor for $3.087M, representing a IRR of 31.23%.