Funding Purpose
Tauro Capital Advisors, Inc. was engaged on an exclusive basis to place debt for the development of two Dutch Bros locations in the Western US.
Property Description
These assets are both Single Tenant Net Lease with 15 yr leases. Both sites are fully-entitled and shovel-ready.
Sponsors
Sponsorship is a repeat Tauro client who is an experienced development firm specializing in retail assets and particularly focused on Dutch Bros sites.
Challenges
- Increased development costs continue to narrow development spreads in recent years.
- To mitigate, our client negotiated reimbursement agreements with the municipalities and tenant presenting challenges to underwriting metrics.
Solutions
- Tauro soured higher leverage debt at competitive pricing.
- Tauro provided effective financial modeling and deal structuring to provide increased loan dollars to structure around the various reimbursement timelines.
Funding
- Loan to Cost: 90%
- Interest Rate: 10.5%
- Amortization: Interest-Only
- Term: 12 Months
- Close Date: 8/5/2024
