|
Sources Of Financing
|
|
|
Sources Of FinancingPrime Retail, Inc. (410-234-0782) arranged for $110 million in financing from Lehman Bros. The agreement would bring the company $90 million in loan partially secured by mortgages and equity interest in outlet centers, and a $20 million mortgage loan on the company’s outlet center in Puerto Rico slated to open this month. The mezzanine loan will be LIBOR based, pre-payable at any time with fixed amortization and a two-year term with a one-year extension.
Dana Commercial Credit (512-472-6111) provides equity and mezzanine loans for new development and projects ready for repositioning in the office, retail and industrial sectors.
Deutsche Bank (888-953-3622) offers a variety of financing options for retail properties including a floating rate mortgage program with terms of one or three years. One year mortgages are for a minimum of $10 million with a DSCR of 1.20x, LTV ratio of up to 80% of MAI appraised value and 85% of loan to acquisition cost. The mortgages are fully prepayable with fees of one to 1.5 points and a one-point exit fee. Three year also have a $10 million minimum with identical DSCR and LTV and loan to acquisition ratios. Three-year mortgages are not prepayable for the first 18 months. Fees are also identical to one-year mortgages. The company offers an investment grade net lease financing program for most types of non-residential properties. Leases are triple net, double net and bond leases. Loans range in size from $5 million to $100 million, and are generally coterminous with the remaining lease term. Typical loans are self-amortizing, but longer amortizations will be considered on a case-by-case basis. LTV ratio of up to 100% are available, with DSCR of 1.00x for tenants with triple net and bond leases, and 1.01x - 1.03x for double net leases. The company also provides a retail mortgage program for anchored, shadow-anchored and unanchored shopping centers. Loan term run 10 years typically, with 30-year amortizations (shadow-anchored and unanchored property amortizations are 25 years). Minimum DSCR is 1.2x for anchored properties, 1.25 for shadow-anchored properties and 1.3 for unanchored ones. LTV ratio range between 75% and 80% as does the loan to acquisition value. Borrowers must contribute to an escrow fund for taxes and insurance.
Ackman-Ziff (212-697-3333) reported a $50 million forward commitment on a 467,000 sq.ft. power center anchored by Staples, Home Depot, and Modell’s and located in Farmingdale, NY. The center’s Phase II, measuring 190,000 sq.ft., is also significantly pre-leased.
Cohen Financial (312-654-8900) secured a $12.5 million construction financing package for River Park Shopping Center, a 320,000 sq.ft. project located at the intersection of Highway 59 and Grand Parkway in Ft. Bend County, TX. A 70,000 sq.ft. Albertson’s anchors the facility. The company also provided $6.823 million in construction financing for Town Center West, a 47,887 sq.ft. shopping center located on 17.5 acres in St. John’s County, FL. The center is anchored by a 27,887 sq.ft. Publix.
GE Capital (212-716-8929)
offers investment-grade credit tenants real estate loans backed by credit leases
and first mortgages. Loans range from $1 million to $30 million.
|