Funding Purpose
- Tauro Capital Advisors was engaged on an exclusive basis to place senior debt for the refinance of a grocery-anchored multi-tenant shopping center in Gridley, CA.
Property Description
- The property is a 70,300 square foot shopping center which is leased to variety of national and local tenants.
Sponsors
- The sponsorship is a partnership between two experienced retail-focused development firms. Bridge financing allowed them improvement dollars to fill a large vacancy and the permanent debt will provide long term cash flow as they continue to improve the center.
Challenges
- Initial efforts to secure CMBS financing fell through during application as treasury indices and spreads continued to widen.
- Need for future development financing on vacant outparcels required flexibility in prepayment and release clauses.
Solutions
- Initial CMBS lender and Tauro kept clear, consistent dialogue through the changing environment, allowing a quick and effective pivot as conduit market proved less certain.
- By removing the outparcels from the new loan collateral, sponsorship is able to secure site-specific financing once new leases are executed.
Funding
- Loan Amount (LTV): $6,000,000 (65% LTV)
- Interest Rate: 5.75% Fixed
- Amortization: 25 Years
- Term: 5 Years
- Guarantee: Full Prepayment
