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Sources of Financing
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Sources of Financing L.J. Melody & Co. (412-471-9660) arranged a bridge loan for $17 million for the University Mall located near Southern Illinois University in Carbondale, IL. The 68,000 sq.ft. center is anchored by JCPenney, K’s Merchandise, Old Navy and GAP. The center also is headquarters of Southern Illinois HealthCare. The transaction included acquisition financing, which was a structured facility with an initial funding of $13 million and a $4 million earnout upon repositioning of the property, including the relocation of the food court and demolition of the former Montgomery Wards store for two additional big box tenants. Additionally, a new Kerasotes stadium-style theater will be constructed. Marabella Commercial Finance, Inc. (760-741-0800) arranged financing of $950,000 for Jack In The Box and $1.454 million for 7-Eleven. The company specializes in net lease properties. Penn Mortgage Bank Corp. (800-757-7366) offers two types of commercial mortgage, including a Conduit program from $750,000 and up nationwide. That program offers loans to apartment buildings up to 85% LTV purchase and 80% LTV refinancing; office, shopping and industrial up to 80% LTV purchase and 75% refinancing and mobile home parks up to 85% LTV purchase and 80% refinancing. The second program is good from $100,000 to $400,000 on many small types of properties, such as five units and up, including gas stations, any owner-occupied business property and mixed-use. The company operates east of the Mississippi River only. Martin Capital Group (270-354-6394) is pricing Walgreens financing at 195 to 205 basis points over the 10-year Treasury in its conduit program. General underwriting guidelines include loan amounts of $2 million minimum, a term of 10 years, amortization of 25 years to 30 years, a DSCR of 1.25, LTV of 75% to 80%, a 0% vacancy, a management fee of 3% and replacement reserves of $0.15 psf. The Argus Group (818-990-7200) offers financing for commercial, industrial, apartments and mixed-use centers in southern CA only. The company offers rates as low as 8% and lends on any improved property except owner-occupied 1-4 or environmentally-challenged property. |