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Sources of Financing
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Sources of FinancingMarabella Commercial Finance (760-741-0800) is targeting 7-Eleven net lease properties for financing. The company has two loan programs available both featuring fixed interest rates of 8%-8.25% and 75% maximum LTV. Loans with 10-year terms and a 30-year amortization period have a minimum DSCR of 120%, while loans with a 15-year term and a 20-year amortization period have a minimum DSCR of 115%. More information is available on the company web site, www.marabellafinance.com.
Petroleum Realty Investment Partners (305-536-1300) financed The Pantry’s acquisition of 23 Fast Lane convenience store/ gas stations in LA and MS. The transaction totaled $24.25 million and marks The Pantry’s entrance into LA.
Alliance Capital Group (281-319-0874) is offering a construction to permanent loan program for acquisitions, renovations, repositionings and some ground-up construction that is pre-leased. Preferred loans are between $10 and $100 million in major metropolitan areas. Loans will be structured as permanent loans with entire amount fully funded at closing with exception of initial draw. Monthly draws are permitted. Interest rates will be set at 230 to 325 bps over the 10-year Treasury Yield and is only charged during construction period. Loan can be rolled over to a fixed rate based on the same spread when the operation is stabilized. Terms are 10 years with a 25 to 30 year amortization period with a maximum of 80% loan-to-cost or value upon completion typical. The minimum DSCR is 1.05 times at time of closing based on projected leases with limited recourse during construction and non-recourse thereafter.
Sanderhoff & Associates (630-629-0408) is offering developers of NNN and NN leased properties with tenants rated S&P BBB or better loan programs including construction and permanent loans and the purchase of existing credit tenant leases. Debt service is offered as low as 1.003x based on bond rates set largely on the credit rating of the tenant. Up to 100% of the property’s NOI is available including future rent increases and loans are non-recourse. The minimum loan size is $1 million and deals can be closed in four to eight weeks.
L.J. Melody & Company (412-471-9660) has arranged financing for the following centers: Richmond Mall in Richmond, KY borrowed $16 million from CIBC World Market. The center is anchored by JC Penney, Goody’s, Office Max and Hastings Entertainment. Valley Hills Mall in Hickory, NC borrowed $36 million from CIGNA. The 610,000 sq.ft. center is anchored by Belk, JC Penney and Sears and the center is under renovation including the addition of a Dillard’s store. Roswell Corners in Atlanta, GA borrowed $13.8 million from JP Morgan Mortgage Capital. The center is anchored by Target, TJ Maxx and Staples and is 92% leased.
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