Funding Purpose
Tauro Capital Advisors was engaged on an exclusive basis to place a loan for the acquisition and development of a new restaurant.
Property Description
The existing restaurant property is being repurposed and leased to Bojangles for a new location.
Sponsors
The sponsor is a privately held real estate firm that specializes on delivering premiere net lease retail developments.
Challenges
- Borrower required maximum loan proceeds
- Current market conditions constraining loan amount and increasing pricing
Solutions
- Tauro sourced new capital partner willing to provide 100% LTC construction debt
- Tauro’s expertise in the space created competition amongst capital providers, leading to a more favorable payment structure
- Favorable prepayment structure allows sponsor to minimize cost of sale
Funding
- Loan to Cost: 100%
- Interest Rate: 10.8%
- Term: 12 Months
- Recourse: Less than 10% personal guaranty plus standard carve-outs
- Prepayment: 6 Months
