Funding Purpose
Tauro Capital Advisors expanded a CRE investor’s diverse portfolio by placing a loan request for the acquisition of two adjacent office buildings in the Midwestern U.S.
Property Description
The two office buildings include 26 suites across roughly 280,000 square feet with a parking ratio of 4.35 spaces per 1,000 square feet.
Sponsors
The sponsor is a very well capitalized and experienced office syndicator. They have a proven track record with a very strong REO portfolio.
Challenges
- Volatile interest rate environment
- Office asset
- Value-Add lease-up
- Secondary market
- Portfolio occupancy began at 67%
- Mitigating purchase price and economics as the asset leased-up
Solutions
- Kept lender interest through transparency and persistence
- Team effort worked closely with the lease-up team
Funding
- Funding Source: Regional/National Bank
- Loan Amount (LTV): $21,700,000 (70% LTV)
- Interest Rate: Sub 6%
- Term: 5 Years
- Amortization: 25 Years
- Recourse: Full
- Prepayment: Percentage step down
