Funding Purpose
Tauro was able to assist a first time client in beginning their investment portfolio by sourcing the necessary debt for the acquisition of a c-store/gas station.
Property Description
This Apple Market and Shell fueling station is located near a large East Coast city. The property is operated by GPM Investments, LLC, a subsidiary of ARKO Corp with over 3,200 locations.
Sponsors
The sponsor is an experienced gas station and c-store owner. Typically an Operator, the sponsor made this purchase as his first investment property.
Challenges
- After weeks of review, original lender backed out of the deal with only a week remaining in buyer’s due diligence period.
- Sponsor net worth and liquidity were insufficient to service the debt.
Solutions
- Back up lender was chosen and was able to offer better terms than original lender.
- Sponsor was able to use home equity line of credit for liquidity requirement.
Funding
- Loan to Value: 60%
- Interest Rate: 6.55%
- Amortization: 30 years
- Term: 10 years
- Recourse: Full
- Prepayment: None
