Funding Purpose
Provided acquisition financing for the purchase of a retail property in Northern CA. This was the third property purchased in a 1031 exchange.
Property Description
Single tenant net lease Chipotle in Northern CA with 10 years remaining on the lease. Corporate guarantee, with strong 8% rent increases every 5 years.
Sponsors
Experienced family owned and operated real estate company based in CA. Looking to take advantage of a NNN retail property.
Challenges
- Clause in the lease that stated this location could not be a burger joint
Solutions
- Took several actions to make sure the borrower was comfortable with this verbiage.
Funding
- Loan to Value: 60%
- Interest Rate: 3.35%
- Amortization 30 years
- Term: 10 years fixed
- Prepayment: None
