Funding Purpose
Tauro Capital Advisors was exclusively engaged to secure an acquisition loan for a single location, fast-food Mexican restaurant.
Property Description
The 1,200 square foot restaurant sits on one-third of an acre along a well-trafficked corridor. The tenant recently executed a new 10-year lease extension that includes annual rent bumps.
Sponsors
The sponsors are experienced retail operators that were able to accommodate 1031 exchange needs for one of their investors. The ownership was structured as Tenants-in-Common to satisfy exchange requirements.
Challenges
- This is the tenant’s only location
- The new lease rate takes effect two months after loan closing
- Flexibility in the financing was needed as there may be some value-add opportunities down the road
Solutions
- Tauro highlighted the longevity of the tenant at this location
- Tauro identified a lender that was able to provide a long-term fixed rate for 10 years. The financing is open to prepay at any time without any penalties or fees
Funding
- Loan-to-Value: 65% LTV
- Interest Rate: 4.70% Fixed for 10 Years
- Loan Term: 10 Years
- Amortization: 25 Years
- Prepayment: Open Prepayment at Any Time
- Origination Fee: 0.25%
- Guaranty: Full Recourse
