Funding Purpose
Tauro Capital Advisors, Inc. was engaged on an exclusive basis to place debt for the acquisition and development of a Starbucks location in Northern California.
Property Description
The property is located on the main thoroughfare in the city of Redding. The lease was signed prior to loan funding on the future 1,200 square foot NNN retail space.
Sponsors
The sponsor is a privately held real estate firm based in Northern California who specializes in first-class, net leased retail development in growing cities.
Challenges
- Lending environment has become increasingly more expensive.
- Seeking 100% Loan to Cost.
- Title company presented challenges and delays in closing.
Solutions
- Tauro sourced creative lending solution at competitive pricing.
- Through a partial personal guarantee, lender was able to get comfortable at 100% LTC.
- Tauro facilitated dialogue between borrower & lender teams to minimize the title requirements and address a timely closing.
Funding
- Loan to Cost: 100%
- Interest Rate: 30-day SOFR + 85 bps (9.99% Floor)
- Amortization: Interest Only
- Term: 1 year
- Recourse: Less than 10% personal repayment guarantee
- Interest Only: 12 months
