Funding Purpose
Tauro was exclusively engaged to place debt on the acquisition of this single tenant net lease car wash.
Property Description
Newly built car was with a signed 20 year absolute NNN lease that began in late 2019 with 1% annual rent escalation in the Southern, US.
Sponsors
Experienced Real Estate investor with multiple low-leveraged NNN assets in his portfolio. Utilizing 1031 exchange proceeds for the purchase.
Challenges
- 1031 timeline required a quick close.
- Client had specific financing and property requirements to make sure this would be a good addition to his portfolio.
Solutions
- Financing from a credit union that gave him the best terms out of multiple other sources.
- Non-recourse was high on the priority list, and his lender was able to fulfill.
Funding
- Interest Rate: 4.2%
- Amortization: 30 years
- Term: 10 years
- Recourse: Non-recourse
- Prepayment: Allowed
