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Sources Of Financing
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Sources Of FinancingPetroleum Realty Investment Partners (305-536-1300) reported over $100 million in transactions during the last ten months, including $60 million in sale/leaseback funding and the balance in debt financing by its joint venture partner, Lehman Bros. The company remains in the market for sale/leaseback, mortgage loan and equipment financing opportunities.
Tanger Factory Outlet Centers (336-292-3010) closed on a $29.5 million loan from Wells Fargo Bank, National Association. The variable interest rate on the loan is based on 30 day LIBOR plus 175 basis points, with interest only payments for the first twenty-four months, then amortizing on a 25-year schedule for the balance of the five-year term. The financing was arranged directly with the Atlanta office of Wells Fargo Real Estate Group.
Marabella Commercial Finance (760-741-0800) arranged a $1.87 million non-recourse loan for a 7-Eleven property at an 8.75% fixed rate. The loan carries a 15-year term with a 20-year amortization and is assumable by a qualified borrower for a 1% surcharge plus costs.
First Union Securities (713-278-4311) loaned Braddock Center, an unanchored retail center in Los Angeles, CA, $594,000 at 9% for 10 years with a 30-year amortization.
Northland/Marquette Capital Group, Inc. (949-717-5200) arranged $18 million in financing for Marigold Center, a 174,284 sq.ft. shopping center on 17.54 acres located on Broad Street in San Luis Obispo, CA.
Martin Capital Group (270-354-6394) offers loans ranging in size from $500,000 to $2 million with fixed rates locked two days before closing. Earlier rate locks are available. Rate spreads range from 195 to 280 basis points over corresponding Treasury rate. Loan terms range from seven to 20 years with amortizations between 15 and 30 years. Minimum debt service ratios are 1.20x to 1.35x depending on property type and condition. Loan fees are .5% to 1% and loans are assumable for 1% per transfer.
Sanderhoff & Associates (630-629-0408) offers two loan programs for developers/borrowers of NNN and NN leased properties rated ‘BBB’ or better (investment grade). The conventional program offers up to 80% LTV ratios on loans less than $5 million and up to 95% LTV ratios on loans over $5 million. The credit tenant lease program offers loans on lease cash flow for leases with a minimum of 15 years remaining. Loans can be greater than 100% of the real estate value. Debt service on these loans can be as low as 1.003x, non-recourse, up to 100% of property’s NOI including future rent increases, with funding in four to eight weeks.
Northgate Funding Co. (518-464-4448) offers ‘100% Plus’ financing for builders, contractors and developers for new projects valued at $10 million or higher, with no upper limit. If loans are for an acquisition of an existing property, some significant form of construction must be associated with the acquisition. ‘100% Plus’ refers to loan options including rolling into mortgage to recapture previously expended soft costs, closing costs, or adding in an interest reserve to cover debt service until income stabilization has been achieved. All loans are non-recourse. In exchange for ‘100% Plus’ financing, the investor receives 25% equity in the project. The company also offers other mortgage programs from $100,000 and up.
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