First Market Properties, which specializes in distressed real estate assets, has acquired the $10.3 million mortgage on a 62,000-square-foot Class-A office building in New City.

The property at 20 Squadron Boulevard, just off the intersection with Route 304, was once known as The Windsor. It is a 37-year-old, six-story building that is about 70 percent occupied, with a branch of TrustCo Bank Corp. as a ground-floor retail tenant.

Its tenants are mostly attorneys, accountants and physicians. A large space formerly occupied by a Veterans Administration medical clinic has been vacant for more than a year.

“This is a quality building that simply became a victim of too much leverage,” says Robert Schoenfeld, senior vice president of the New York City company. The property’s mortgage has a balance of $10.3 million.

Schoenfeld notes that the nearly three-acre property includes parking for 167 vehicles, and that several cell towers on the building’s roof are significantly supplementing income from tenants. The building was renovated in 2008.

“When this asset is stabilized it will once again have a productive future and make a strong contribution to New City’s downtown,” said Schoenfeld.

He said that FMP most likely will take possession of the property via deed in lieu of foreclosure.

Acquisition of the mortgage was brokered by Mission Capital Advisors.

First Market Properties acquires mortgages, individually or in portfolios, as well as bank-owned real estate. The firm is active in multifamily, retail and office property in the Northeast, Southeast and Southwest regions of the nation.

“We have special expertise in evaluating collateral, closing quickly and working to maximize the value of assets,” said Schoenfeld.