Funding Purpose
Tauro Capital Advisors has been engaged on an exclusive basis to place a loan for the acquisition and development of two NNN Taco Bell and Scooter’s Coffee locations in the Midwest.
Property Description
The asset is a fully stabilized and leased NNN retail property located less than a half mile from a major highway offramp. The asset has a total of 3,000 square feet of total rentable space valued at $71.12 per square foot.
Sponsors
The sponsor has a strong relationship with Taco Bell operator and Scooter’s Coffee.
Challenges
- Tight closing timeline
- Franchisee credit
- Rapidly rising interest rate environment
Solutions
- Streamlined closing process in order to meet firm closing deadline per the purchase agreement.
- Negotiated competitive fixed-rate financing despite increasing interest rate environment.
Funding
- Loan to Value: 78.5%
- Loan to Cost: 100%
- Interest Rate: 9.5% fixed
- Term: 12 months
- Recourse: Non-recourse
