$8,300,000 Construction Loan for the Acquisition and Development of a New Site Leased to Chick-Fil-A and Quick Quack in La Quinta, CA
- Loan-To-Cost: 100%
- Interest Rate: 12.81% Fixed
- Term: 18 Months
- Amortization: Interest-Only
- Close Date: 11/3/2023
Tauro Capital Advisors, Inc. was exclusively engaged to place debt for the acquisition and horizontal development of 3 parcels, located in La Quinta, CA. 2 of the sites are pre-leased for a new Chick-Fil-A and Quick Quack car wash to be built. As one of the most active intermediaries in the STNL construction space, Tauro has long-standing relationships with numerous lenders providing up to 100% Loan-To-Cost financing. After creating a bidding environment for this opportunity, Tauro secured an $8,300,000 construction loan with a fixed interest rate at 12.81%. The term is 18 months giving ample time for the developer to complete construction and subsequently offer the property for sale. Short-term funding was also secured for 1 of the 3 parcels which was immediately sold.
The Sponsor is a repeat client, and Tauro is in the market for additional STNL construction loan requests. The Sponsor is a merchant builder of NNN retail assets and has the following major tenants: 7-Eleven, Raising Canes, Starbucks, Bojangles, Chick-Fil-A, and more.
$4,500,000 Construction Loan for the Development of a NNN Wawa in the Southeast, US
- Loan-To-Cost: 90%
- Interest Rate: 13.50%
- Term: 24 Months
- Recourse: Non-Recourse
- Close Date: 11/16/2023
Tauro Capital Advisors, Inc. was engaged on an exclusive basis to place debt for the development of a convenience store in the southeastern US. The asset is a NNN Wawa Convenience Store and Gas Station asset. The property consists of 30,000 square feet valued at nearly $5 million.
Sponsorship is held by a commercial real estate investment company operating out of the southeastern region. Ownership specializes in retail development. The Sponsor was referred to Tauro with the only requirement being to close quickly with the best terms possible. Within a month of deal identification, Tauro was able to model, market, and place debt at 95% loan-to-cost getting the sponsor the best terms available on short notice.
$12,800,000 Bridge Loan for the Cash-Out/Refinance of a Single-Tenant Industrial Asset in the West, US
- Loan-To-Value: 65%
- Interest Rate: 8.15%
- Term: 3 Years
- Amortization: Interest-Only
This single-tenant industrial property currently serves as a Cummins regional location. The asset consists of nearly 100,000 square feet on nearly 14 acres with 11 years left on a 33 year lease with 2% annual rent escalations. The 26 year old property is valued at roughly $21,000,000. The location is central to major markets around the US and within close proximity to distributors. Additionally, the market is only expected to grow further.
The Sponsorship consists of two high net worth individuals living in the Southern California region. They got their start in commercial real estate by investing in NNN assets back in the early 2000s. With this property, the loan is coming due, and the current lender is requiring cash to extend and a 25 year amortization. Tauro has sourced financing with cash-out that’s non-recourse and interest-only to bridge the gap until the asset can be sold.
• Earlier this month, The Los Angeles Planning Commission approved a draft ordinance in a 5-1 vote for permanent streamlining measures for certain affordable housing projects.
• The Affordable Housing Streamlining Ordinance aims to codify elements of Mayor Karen Bass’ Executive Directive 1, an action to speed up approval times for 100% affordable projects.
• More than 8,000 units of affordable and permanent supportive housing have been affected by ED1 since it was announced in late 2022, according to Urbanize LA.
• While the draft ordinance follows the goals of Mayor Bass’ ED1, there is one key difference between the two: The ordinance excludes projects in single-family zones from tapping into the power of ED1.
• This has raised concerns that rent-stabilized and other de facto affordable units could possibly be taken offline to build new affordable projects, as reported by the Daily News.
• This concern resulted in the lone dissenting voter, Commissioner Helen Leung voting against the ordinance as she believes the ordinance does not adequately include anti-displacement protections for existing residents.
• Other organizations like Abundant Housing also favored including single-family zones in the ordinance.
• With the recent approval from the Planning Commission, the draft ordinance still requires the approval of the full city council.