Funding Purpose
Our client had a family trust which owns a variety of QSR (Quick Serve restaurant) locations. Tauro helped to refinance two of those locations: In-N-Out in Texas and Carl’s Jr. In California.
Property Description
Two single-tenant net-leased properties with strong credit tenants.
Sponsors
Family Trust who owns various retail properties in major MSA’s across the lower 48 states.
Challenges
- Complicated ownership structure
- Two properties in two different states
- 10 years of Interest-only
- We also got a much more favorable prepayment structure which burned off completely after 5 years
Solutions
- Creative and flexible local bank loan
- Provided competitive pricing, full term interest-only, and release provisions should they choose to sell 1 of the two assets
Funding
- Loan Amount (LTV)
- Interest Rate – 4.45% (2.75% over the 5 year treasury in 2019) fixed for 5 years, then re-fixing at same spread but not to exceed 4.95%
- Term -10
- Recourse – springing based on tenant’s remaining open for business
- Interest Only -10 yrs
