Funding Purpose
Source debt at a leverage point and at terms to allow sponsorship to take advantage of a value-add retail opportunity, consistent with their syndication parameters
Property Description
6-tenant retail building with a free standing drive-thru restaurant to a Mexican food tenant
Sponsors
Real Estate syndication team with a successful track record of value-add execution in retail
Challenges
- Multi-tenant retail with short term or expired leases
- Recently decreased owner which made it difficult to collect financial information
Solutions
- Lender was comfortable with sponsor’s financial strength and value-add retail experience. Lender did not require all the historical financial information
Funding
- Loan Amount (LTV): $1,935,000
- Interest Rate: 4.00%
- Amortization: 25 Y
- Term: 10 Y
- Recourse: Full
- Pre pay penalty: None
