Funding Purpose
- Tauro Capital Advisors, Inc. was engaged on an exclusive basis to refinance a HeadStart Children’s Institute which provides early childhood education, health, and nutrition to low-income children and their families.
Property Description
- The property is located in the Compton Business District. It consists of 4,425 square feet with 30 parking spaces.
Sponsors
- The sponsor is a well-known developer in the South Los Angeles market. He currently owns 500,000 square feet office and retail property in Los Angeles and the Midwest.
Challenges
- The developer was seeking a cash-out refinance to remove all of his existing equity from a government-funded preschool non-profit.
- The developer and his partner delayed making a decision of the cash-out refinance in a rising interest rate environment.
Solutions
- Tauro was able to negotiate with the lender to decrease the standard debt service coverage for an asset of this type. The result allowed the client to pull max proceeds in spite of an increasing interest rate environment.
Funding
- Loan-to-Value: 60%
- Interest Rate: 5.50%
- Amortization: 25 Years
- Term: 5 Years
- Prepayment: No Penalty
