Funding Purpose
Tauro Capital Advisors helped a long-standing client source construction financing for development of new adjacent Taco Bell and Dutch Bros location in the Midwestern U.S.
Property Description
The property is located near a major Midwestern city and will break ground upon loan funding.
Sponsors
Repeat client of Tauro who is an experienced build-to-suit developer and Taco Bell franchisee.
Challenges
- Changing economic conditions have led to increased cap rates in the single-tenant space
- Tightening underwriting and more expensive financing have limited the lending environment at 100% LTC
Solutions
- Developer and Tauro worked closely to provide accurate sales comps for other similar properties and provided lender with an assigned appraisal that supported the value conclusion
- Tauro’s lending relationships and experience with the sponsor provided the selected lender a higher level of comfort to provide 100% LTC debt
Funding
- Loan Amount (LTV): $4,000,000
- Interest Rate: 30-Day SOFR + 8.99%
- Term: 1 Year
- Recourse Completion Guarantee and Partial Repayment Guarantee
