Funding Purpose
Tauro Capital Advisors, Inc. was engaged on an exclusive basis to place perm debt which would recapitalize the developer to pursue other opportunities in the immediate area. Post closing, the sponsor was able to use the proceeds to go under contract on a 450k SF industrial property.
Property Description
This hangar consists of 2 bays, 50k SF, and 28′ doors leased to Gulfstream on a 4 year term with a 1 year option to renew. This property is in an Opportunity Zone.
Sponsors
The sponsor is a local, opportunistic developer who has developed lifestyle retail and industrial properties.
Challenges
- Sponsor’s main priority was non-recourse
- Original lessee defaulted on its lease obligations and never took possession.
- When Tauro first took on the assignment, it was vacant and a spec hangar.
Solutions
- Funding secured with a bank headquartered in Phoenix that Tauro has a longstanding relationship with and was able to show the lender the potential value once the new lease was signed and was able to secure 5+5 loan term.
Funding
- Loan Amount (LTV): $6,200,000 (50%)
- Interest Rate: 4.25%
- Amortization: 20 years
- Term: 5 + 5
- Recourse: Non-recourse
- Prepayment: Step-down (3,2,1)
