Funding Purpose
Tauro Capital Advisors, Inc. was engaged on an exclusive basis for the refinance of a NNN Retail CVS located in the Southern US.
Property Description
This asset is a fully leased and stabilized NNN CVS operating at this location since 2008. The property is located near a major US Highway and is surrounded by other large retail stores.
Sponsors
Our Client in a highly experienced real estate investor based in Southern California. This property was purchased as part of a 1031-exchange as they have been relocating their portfolio.
Challenges
- Client seeking 11-year term to match remaining lease term.
- Rent holiday for the last 36 months.
Solutions
- 13-year loan term with 30-year amortization to protect borrower against loan maturity with a short remaining lease term.
- Debt service reserve for the last 36 months.
Funding
- Loan to Value: 55%
- Interest Rate: 3.65%
- Amortization: 30 years
- Term: 13 years
- Recourse: 50%
- Prepayment: Step-down
