Funding Purpose
Tauro Capital Advisors, Inc. was engaged on an exclusive basis to place debt for the acquisition of NNN Retail Walgreens location in the southern US.
Property Description
The property is part of a 20-year absolute NNN lease with Walgreens. It is nearly 15,000 square feet and comes with 2 drive-thru lanes. It’s near other major retailers.
Sponsors
The sponsor is an experienced commercial real estate owner and investor with 4 other properties in his portfolio. His financials are strong.
Challenges
- Complex Sponsor entity structure.
- Only 4.5 years left on lease.
- Walgreens credit dropped before approval.
- Initial bank passed during underwriting with several Walgreens in their portfolio going dark.
Solutions
- Tauro’s Advisory Services team helped organize entity structure to get lender onboard.
- Utilized backup lender with long-standing relationship to obtain similar loan structure.
Funding
- Loan to Value: 60%
- Interest Rate: 7.11%
- Amortization: 25 years
- Term: 5 years
- Close Date: 12/19/2023
