Recent Commercial Real Estate Loan Closings

$20 Million
City of Industry, CA
Industrial
Corporate Headquarters Refinance

Loan is a 10-year Fixed Non-Recourse CMBS on a 324,925 Square Feet Class-A Industrial Building.

CHALLENGE #1:
MAXIMUM CASH-OUT LOAN FOR A SINGLE-TENANT, OWNER-USER, NON-CREDIT GRADE TENANT

Mitigant: Professionally package and present to new lender the financial creditworthiness of the private borrowing institution. Demonstrated that subject tenant has been conducting international business for over 30 years, and that their balance sheet could absorb a new $20 million first T.D.

CHALLENGE #2:
MARKET INDUSTRIAL RENT COMPS DID NOT SUPPORT THE CURRENT RENTAL RATE TO BE EXECUTED AT THE CLOSE OF ESCROW. NEW RENTAL RATE HAD TO BE SUPPORTED BY AN APPRAISAL, ESPECIALLY TO PROVIDE PROPER DEBT YIELD AND DEBT COVERAGE FOR THE TARGETED $20 MILLION MAXIMUM CASH-OUT LOAN.

Mitigant: Worked diligently with appraiser, new lender, and leading industrial brokers in the area to identify appropriate NNN single-tenant comps and reconcile modified gross comps vs. NNN comps. We leveraged personal networks and market knowledge to identify a newly executed lease by a major company, which was not exposed to the market yet. This rental comp strongly supported our case for the new rent our owner-user was going to execute per the new lease.

CHALLENGE #3:
CLIENT’S CURRENT CMBS NOTE DID NOT ALLOW FOR AN EARLY PAYOFF

Mitigant: Identified a defeasance company and smoothly coordinated a new defeasance set-up in approximately seven business days.

CHALLENGE #4:
NAVIGATING THE VOLATILE CAPITAL MARKETS AND GETTING SUBJECT CMBS LOAN EXECUTED DURING THE GREEK/EUROZONE DEBT CRISES

Mitigant: Closely monitored the 10-year SWAP rate movements. As the deal came closer to formal approval, we engaged the new lender and its bond desk to lock the 10-year SWAP rate and spread at the optimum time.

$8 Million
New York, NY
Special Use
Redevelopment Project

CHALLENGE #1: VACANT MID-BLOCK REDEVELOPMENT

Mitigant: High net worth and liquidity of sponsor.

CHALLENGE #2:
CONSTRUCTION AND COMPLETION RISK

Mitigant: Successful track record and history of project manager.

Uniquely structured Bridge loan that provides 100% of renovation costs, reserves, financing costs and all soft costs for this boutique hotel redevelopment project. Renovation and soft costs are funded as needed in monthly draws over 24 months with an option to extend 12 months additional.

$7.99 Million
Beverly Hills, CA
Multifamily
Cash-out Refinance
$5.88 Million
Orlando, FL
Retail
Rate & Term Refinance

CHALLENGE #1:
SPONSOR REQUIRED A NON-PPP, NON-DEFEASANCE LOAN

Mitigant: High net worth and liquidity of sponsor.

CHALLENGE #2:
UNANCHORED SHOPPING CENTER

Mitigant: 100% occupancy including several national tenants.

CHALLENGE #3:
SHORT TERM STRATEGY FOR THE PROPERTY

Mitigant: Premiere location with strong demographics.

$5 Million
New York, NY
Special Use
Acquisition

CHALLENGE #1:
30-DAY FUNDING REQUIREMENT

Mitigant: Lender was comfortable performing within the required timeframe.

CHALLENGE #2:
TWO SEPARATE VACANT COMMERCIAL CONDOS

Mitigant: Sponsor attached and cross-collateralized two additional debt-free properties.

CHALLENGE #3:
INSUFFICIENT SPONSOR NET WORTH AND LIQUIDITY

Mitigant: The new debt is collateralized as one loan to a single SPE Borrower.

$5 Million
Burbank, CA
Retail
Rate & Term Refinance

CHALLENGE #1:
ROLLOVER EXPOSURE

Mitigant: Majority of tenants have occupied the property for over 10 years.

CHALLENGE #2:
DEFERRED MAINTENANCE

Mitigant: Immediate repairs would be repaired within 90 days of close. The year-one repair costs would be held back and the repairs were to be completed within six months.

$3.495 Million
Bedford, TX
Office
Rate & Term Refinance

CHALLENGE #1: BELOW MARKET OCCUPANCY

Mitigant: Sponsor is a professional management company that successfully increased occupancy in their first year from 40% to 83%.

CHALLENGE #2: DEFERRED MAINTENANCE

Mitigant: Immediate repairs would be completed within 90 days of close. Sponsor supplied business plan including past year’s on-budget, successful execution of plan.

CHALLENGE #3: ROLLOVER EXPOSURE

Mitigant: Sponsor secured lease extensions and agreed to ongoing reserves to be released upon renewal.

$12.75 Million
Orlando, FL
Retail
Acquisition

QUICK HELP – ASK AN EXPERT:

Do you have questions about commercial real estate financing? We are here to help. Complete the form below and one of our experts will contact you within two business hours.

Fields marked with an * are required