Nothing ventured, nothing gained.

Hudson Realty Capital LLC, the sponsor of two real estate funds, has announced it has been repaid on three loans: one mezzanine financing and two first mortgages totaling more than $10 million.

The loans, although distinct in terms of their collateral and loan structures, each have a common link according to Spencer Garfield, managing director of Hudson Realty Capital.

"All involved sophisticated borrowers who were interested in financing projects that were not eligible for funding from conventional lenders," he explained. "The repayments illustrate the positive underwriting that was conducted by HRC at the onset of the financing and demonstrate our team's ability to provide varied funding options to assist borrowers involved in diverse activities."

The mezzanine financing was a $7.75 million loan provided to Cedar Income Fund Partnership, L.P. and secured by the 522,629 s/f Camp Hill Mall in Camp Hill, Penn. and three neighborhood shopping centers in and around Philadelphia. A NYSE-listed entity, Cedar repaid the loan in little more than 30 days by raising capital through a secondary equity offering. Since Camp Hill's purchase, Cedar has worked to re-tenant a substantial portion of the shopping center, resulting in increased value of the property and cash flow that exceeded original projections.

"This was an example of a complex mezzanine financing because the collateral included four assets, the largest of which was in the process of being repositioned," Garfield noted.

The second loan involved a $1.8 million short-term first mortgage by HRC that allowed the owner of a boutique mixed-use building located on Water St. in lower Manhattan to pay off existing debt on a defaulted loan.

"In this case, the borrower needed a high-leverage loan in a short period of time with surety of execution to meet a tight timeframe for a previous loan that had come due," Garfield noted.

The owner ultimately obtained long-term, fixed-rate financing for the five-story, mixed-use building comprised of 6,250 s/f of rentable space and 15,000 s/f of air rights. The property is currently 100% occupied by retail, office and residential tenants, and the roof is leased to several telecommunications providers for antenna space.

The third transaction involved a $2.1 million first mortgage to Ten Hillside Road, LLC, which was used to refinance existing debt and complete construction of a self-storage facility located in Cromwell, Conn. The loan term was 18 months, but the borrower repaid HRC in just eight months. The completed facility features five single-story, self-storage buildings containing 378 units and one small office building, situated on 4.88 acres of land. It will be the only facility of its kind in the area, with proximity to 3,800 condominium units that are expected to provide a steady stream of customers with storage needs.

"This was a construction loan on a viable real estate transaction in which the borrower lacked development experience but demonstrated his competence with an excellent business plan," Garfield explained. "The repayment is a testament to his capabilities."