Funding Purpose
Tauro Capital Advisors, Inc. was engaged on an exclusive basis to place debt for the horizontal development of a land assemblage in Southern California.
Property Description
The land is entitled for commercial retail and will be developed for the use of a gas station/ convenience store, Quick-Serve Restaurant, and one user to-be-determined.
Sponsors
Sponsorship is an experienced vertically integrated CRE development firm with 35+ years of track record and reputation. They are a repeat Tauro client.
Challenges
- Volatile capital markets environment presented huge challenges in attracting lender.
- Long lead times with end users and defining developer’s responsibilities for off-site improvements led to many budget changes.
Solutions
- Tauro fostered great relation with developer, lender, and our firm with a high level of trust.
- Advised structuring off-site work and reimbursements along with presentation of loan-package to support terms while making sure lender is at comfortable LTV ratio.
- Increased amount nearly removed need for cash equity.
Funding
- Loan To Value: 75%
- Term: 15 Month Interest Only
- Rate: 11.49%
- Fees: 2% In
- Prepayment: Allowed
- Close Date: 8/20/2024
